Foreclosures in some states are at all time highs however Moody's says don''t worry about it.
Wisconsin homes remained high throughout the first half of 2007, in which foreclosures jumped 34 percent.Milwaukee County foreclosure filings are nearly 48 percent higher compared with the first half of 2006. That's more than double the statewide increase.
Meanwhile, California homeowners are getting the highest number of mortgage default notices in 10 years.NOID's Are in fact up by 15.4 percent from 46,760 for the previous quarter, and up 158 percent from 20,909 for second-quarter 2006, according to DataQuick Information Systems of La Jolla.
Countrywide said mortgage delinquencies were particularly high in areas of central California, South Florida and the Midwest.
Moody's on Wednesday maintained that the accounts of the leading US financial institutions were sound. "Their ability to withstand shocks is very high, perhaps never higher."
It pointed to five securities firms, Bear Stearns, Goldman Sachs, Lehman Brothers, Merill Lynch and Morgan Stanley.
"Profitability is very high, with 45 billion dollars (33 billion euros) accumulated in 2006 as opposed to 12 billion in 1998," the report said.
"The main risk in our view at this juncture is not that the system may suddenly collapse but rather that it derives a feeling of invulnerability from this episode, when losses have been eventually digested," Moody's warned.
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