The Mortgage Crisis Is Not Over but There are Bargains in Stocks

60 Minutes' Scott Pelley reports on the mortgage crisis that's far from over with a second wave of expected defaults on the way that could deepen the bottom of the U.S. recession.

On the next wave of defaults: "...just like the sub primes, the Alt-As and option ARMs were bundled and sold to investors." Watch the video:


On the next wave of defaults: "...just like the sub primes, the Alt-As and option ARMs were bundled and sold to investors." Watch more CBS Videos Online

It is too bad people got loans they could not pay back. I have a 5 year, 4.875% ARM that reset at yesterday's 1-year LIBOR rate plus 2.25%. With today's low LIBOR rates, my mortgage rate will go down starting with my February 2009 payment. [See Libor Rates at a Glance]

Ninja Loans were the worst

• No Income
• No Job
• No Assets

Ninja loans became popular because some borrowers and lenders believed real estate would only go up.

"One out of ten Americans is behind on their mortgage." The good news in the story is one of the people who predicted the financial melt-down is finding good values in the US stock market.

More Information:

• Libor Rates at a Glance
  
  
• US Treasury Rates at a Glance
  
  
• World Stock Markets at a Glance
  

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