Posted on 08/06/2009 6:34:31 AM PDT by fiscon1
Cisco reported earnings after the bell yesterday and its CEO, John Chambers, was far too gloomy in his forecast. As such, not only is the stock down but the NASDAQ sector with it. The NASDAQ is off about a half percent, while the other two indices are up by a bit more than that. Meanwhile, Taylor Bean and Whitaker closed down yesterday. That may not be a familiar name but they were the third biggest FHA lender in the country. They have been characterized as buying a lot of the "junk" that other lenders won't buy. This is going to actually be a major disruption to the mortgage market. There's likely to have been as many as one hudred thousand loans in their pipeline. All of those are lost. Many will be looking for new banks. With a major player out, banks are likely to raise rates just slightly. That likely also means longer wait times for any borrower currently refinancing.
(Excerpt) Read more at theeprovocateur.blogspot.com ...
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