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, Random Roger (199 clicks)
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Roger Nusbaum submits: So HSBC (HBC) is getting a lot of attention because of problems in the sub-prime lending area. Someone correct me, but didn't HSBC buy Household a while back?

I wrote negatively about HSBC a couple of years ago because I did not see how a zillion very small accounts in China could be very profitable.

I have never been a fan of sub-prime lenders because of the blowups that come along every now and then.

While I would not call HSBC's stock a blow up, the action in New Century (NEW) is a blow up. Novastar (NFI) is another one capable of blowing up now and then and was down 10% Thursday.

I wrote about the mortgage REITs here in 2004; never been a fan.

Full disclosure: one client asked me to buy NEW a while back. I could not talk him out of it, but I sold it Thursday at the opening print.

Source: HSBC, Mortgage REITs, New Century and Novastar