| Perfect storm of debt rattles Wall Street
Although Paulina's case might seem unusual, the increase in recent years of fraudulent mortgage schemes and loan defaults are both key factors in the current global credit crunch. 'While the lending guidelines were loose and house prices were rising the increase in the number of frauds was crazy,' says David Tankin, Paulina's lawyer who specialises in helping homeowners prevent foreclosure. 'The fraud problem has reached such epic proportions that it is hitting ordinary middle class people and not just the sub-prime end of the market.' Scott and Latosha Bickel live near Paulina in Brooklyn. The couple are both teachers and own their own home. They spent the summer trying to buy a holiday home but almost lost all their savings when their mortgage company went bust on the day their purchase was due to complete.
The Rock is rapidly becoming a millstone
FIND me a reason why anyone should keep their money in Northern Rock. You can get just as competitive savings round the corner at another bank or building society and you don’t have to wake up everyday wondering what will happen to your money. I accept that should Northern Rock go into financial meltdown, the government has guaranteed all losses for the stricken bank’s depositors. But most savers just don’t need the worry. I am growing increasingly concerned that unless a deal is done by Christmas a rescue will be impossible. The bank’s once-loyal customer base, even in its home city of Newcastle, has had enough. The only customers hanging in there appear to be those who took out Northern Rock mortgages and, I suspect, a minority of those are misguidedly hoping that if the bank goes into administration they will somehow not have to repay their loans.
GM's next generation Chevrolet Impala will remain FWD-based
GM will instead rely on its direct-injection (DI) 3.6 liter V6 engine to power its luxury vehicles. The DI V6 produces 304 HP in the CTS compared to the 320 HP, 4.6 liter Northstar V8 engine used in the larger STS. The V6 engine does, however, have a huge deficit in the area of torque when compared to the current Northstar V8 -- the V6 produces just 273 lb-ft of torque while the V8 delivers 315 lb-ft. GM claims that the move to the DI V6 will not only improve the fuel economy of its larger vehicles, but will also save weight across the board -- the V6 is anywhere from 150 pounds to 200 pounds lighter than the Northstar V8. Another big loser in the midst of new CAFE regulations is Chrysler's Hemi engine. "The Hemi is not the powertrain of the future," said Chrysler co-president Jim Press.
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