Stagflation fears hit Wall Street; Dow slides 143, Nasdaq 27
CBS
Transcript
[Music] Wall Street is worried about stagflation the combination of rising inflation and a slowing economy the last time the US economy experienced stagflation was back in the 197s and economists foree it happening again well that triggered a selloff on Wall Street where the Dow slid 143 points the NASDAQ fell back 27 for months now we've been worrying about a spike in foreclosures when subprime adjust aable rate mortgages start resetting to much higher interest rates but a new report shows it's even worse many of these loans are defaulting well before the increase defaults for risky Home Loans issued in 2007 none of which have reset yet topped 11% in November that's about 300,000 households and twice the default rate for the same period the year before and it is getting more expensive to finance that home according to Freddy Mack the average interest rate on a 30-year mortgage jumped this week to 6.04% from 5.72% last week meantime the rate on a 15-year loan Rose to 5.64 still both are below the averages at this time last year that's your money watch log on to cbsnews.com for more business headlines in New York I'm Alexis christopherus