Business news for Mon, 31 Dec 2007 & with word subprime. 7 news.

Reuters - Stocks fell on Monday, but the market managed to make a modest advance in 2007 after gains in energy and technology offset the dramatic sell-off in financials from the mortgage market meltdown.

Reuters - Home builders and financial issues, the biggest casualties of the subprime lending meltdown, were hit again by tax-motivated selling in recent weeks but could rebound a bit early in the new year, money managers said on Monday.

NEW YORK (Reuters) - Home builders and financial issues, the biggest casualties of the subprime lending meltdown, were hit again by tax-motivated selling in recent weeks but could rebound a bit early in the new year, money managers said on Monday.

The subprime lender said it would fall short of regulatory capital requirements, sending its shares down 20 per cent

Never mind the U.S. subprime loan crisis, the main cause of Japan's lackluster economic performance this year is entirely self-inflicted, according to analysts.

1. The housing market suffered its worst slump since the Depression and foreclosures soared as the collapse of the subprime mortgage market rattled banks around the world. Financial service companies were expected to report one of their worst years ever, and the Federal Reserve is proposing tighter lending rules to protect consumers and rein in irresponsible lenders.

The subprime industry succeeded in defeating state efforts to limit risky lending to borrowers with weak credit during the housing boom. Ameriquest, until recently one of the biggest lenders, distributed over $20 million in political donations and swayed lawmakers in New Jersey and Georgia.