Recently, New Century Financial Corp. -- the nation's largest "subprime" mortgage lender -- filed for Chapter 11 bankruptcy. This was an astounding collapse, since the company originated more than $60 billion in loans in 2006. With HSBC's recent write-off of more the $11 billion in subprime loans, even the normal optimistic Alan Greenspan, past chairman of the U.S. Federal Reserve Board, cautioned that the "spillover" from the housing market correction could trigger a national recession in 2008.
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Manning, Robert, "Save public from drowning in red ink" (2007). Rochester Democrat and Chronicle,Accessed from
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