More (Bad) Financial News

Sorry to keep bringing up bad news on the economy, but there isn't much good to report these days. Unsurprisingly, there has been more fallout from the collapse of the subprime credit market.

CNNMoney is reporting that Bear Stearns, a New York-based financial firm, will devalue its subprime market assets by $1.2 Billion and subsequently show a loss for the third quarter of this year. Additionally, Countrywide Financial Corp., the nation's largest lender, has stated that reducing subprime its lending operations has played a major role in a 48% drop in loan origination for October.

Although these statements are evidence that the worst is yet to come for the economy, it is a good sign that the big financial firms are attempting to right the ship, own up to the flaws in the system, and lay the ground work for a stronger market in the future.