Why Subprime Lenders Are Going BK 

Subprime lenders are filing bankruptcy like mad because they are suffering excessive default loans. These lenders sell their subprime loans to a secondary market. Since a high percentage of the loans are defaulting, nobody is willing to buy them on the secondary market. To make matters worse, the financiers providing lines of credit to the subprime lenders are also yanking the lines. This means the subpriime lenders have no money to lend and no buyers for the loans currently on their books. Hello bankruptcy!

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