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This is not investment advice. Just a discussion about the collapsing US Dollar and financial institutions. My, my, my...what a tangled web of injustice and financial ruin of our worth as a nation, the credit-nation. Should I sell on the up tick and buy on the dips? I'm short this stock.

Investing in Subprime Lenders: Headed to Bankruptcy

By Ian Cooper

March 6, 2007

Delinquencies and foreclosures have already led 31 subprime companies down the toilet. And it’ll soon be 32, should things get any worse for the likes of New Century Financial (NEW: NYSE).

New Century Financial traded above $30 just weeks ago. It now trades under $6. Not only did NEW just announce it was the target of a Federal criminal inquiry into the accounting and trading in the stock, it warned that it will likely breach a lending covenant with financial backers. Plus, there are fears that auditors could warn of substantial doubt over the company’s ability to stay in business much longer.

We’re not talking about a small company here. New Century is one of the biggest subprime lenders in the United States. And it’s now facing possible liquidation or bankruptcy.


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