Housing Crunch Spreading Fast Across the Economy

Tuesday, Jan. 15, 2008 5:14 p.m. EST

Bank of America’s $4 billion purchase of distressed lender Countrywide Financial is already being touted as emblematic of the fallout of the subprime mortgage market.
But economists say that more other large firms – representing an array of related industries, not just mortgage banking – may be at more than a symbolic risk of failure, or purchase by larger corporations, in the coming weeks.

"Any financial institution, or investor, with any asset-backed securities will take a hit. This includes pension funds, life insurance companies, hedge funds, and selected mutual funds,â€