Reliant Financial Service Corp. (RFNS)

[2-edged-sword]

On another positive note...and there is not many at this point...the feds will likely cut the interest rate again by another 1/2 point. Decreasing interest rates should start to extinguish the firestorm of foreclosures...making mortage payment more affordable. If the sub-prime fallout starts to improve here in the US and the demand for these types of loans still subsists, I think there will be less jitters by insurance companies to step up and insure these sub-prime loans. Frankly,
if there is potential for money to be made and there is enough demand within the sub-prime Candian Sector, someone is bound to eventually step up to the plate...especially with a strong insurance wrap backing the loan pool. What's happening now is forcing major policy changes in the way Sub-prime loans originated, financed and sold. I have no doubt there will come a day when a new crop of sub-prime companies arise and prosper from the sweeping changes that are taking place now.
If Reliant can somehow hold it together thorough these changes...they still have a chance. If things don't improve and they can't find someone to insure their loan pools within the next 4-6 months...Reliant will likely declare bankruptcy.