


THE seized-up United States mortgage market claimed more victims both here and abroad last week. The American Home Mortgage Investment Corporation, once a big lender, closed its doors, laying off more than 6,000 workers. In Germany, IKB Deutsche Industry bank received a $4.8 billion bailout from a government-owned group that said it would cover potential subprime losses at the bank.
In a report last week, Charles Peabody, an analyst at Portales Partners, an
independent research firm in New York, characterized the state of the mortgage
market this way: “Investors finally realized that there is such a thing as a bad
mortgage loan. As a matter of fact, there is such a thing as a whole bunch of
bad mortgage loans.â€
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