American Home Mortgage Goes Bankrupt

The credit correction in the subprime mortgage market continues to collect scalps. The latest is a biggie. American Home Mortgage has gone bankrupt. Although the lender was known to have problems, the drop into bankruptcy was stunningly quick. Within a week, the business lost its credit lines and saw a stock price in the teens plummet into the cents. This is another big step in the subprime market correction. You should expect this to continue for the foreseeable future. Shockingly, the subprime market may disappear entirely. Who could have guessed as much only six months ago?