The latest installment in the subprime mortgage meltdown: Bank of America purchases the ailing Countrywide.  

In previous blog posts, we have talked about the subprime mortgage meltdown and how it created a ripple effect that spread through our economy (even affecting business credit).

As of this morning, we have seen the latest development in the ongoing “shuffle” of mortgage companies. It has been public knowledge that Countrywide — like so many other mortgage lenders — was struggling financially. Financial analysts expected that the mortgage giant would have to declare bankruptcy at some point.

But instead of folding completely and losing billions, Countrywide was sold to Bank of America — to the tune of around 4 billion dollars.

This is just the latest in an ongoing string of mortgage company collapses. Ameriquest, formerly one of the biggest subprime mortgage lenders in the country, now has what equates to a “Sorry We Are Closed” message on their website.

Thus the economical cycle continues, with its many ups and downs. We have seen it before, and we will no doubt see it again.

But how does all of this affect you, as a business owner? This is the subject of a free booklet we are preparing, aptly titled “The Ripple Effect.” It should be online sometime in February, and we will announce it here on the blog and also through our newsletter.

So if you haven’t signed up for the free newsletter yet, now is the time.

This entry was posted on Friday, January 11th, 2008 and is filed under Business Financing.