Credit Crunch Snares Another Subprime Lender

Credit Crunch Snares Another Subprime Lender

Excerpt:

Accredited Home Lenders (LEND)
Share price as of Monday's close: $11.40
Share price now: $4.37
Percent change: -61.7%



The News: Investors decided that if you can't do the prime it's selling time, and unloaded shares of Accredited Home Lenders (LEND) at a furious pace Tuesday, cutting the value of the stock by 62% in midday trading.

The San Diego subprime mortgage lender announced Tuesday it was having liquidity trouble and was looking for more money to finance its higher risk loan pools as its banks stepped up their margin calls.

Questions:

1. Will this have a long term effect on the economy as a whole? My guess: No!
   
2. Will it impact Wells Fargo (personal interest on this one)? Doubt it!