Tightening Lending Standards To Slash Subprime Mortgages by 50%; Alt-A by 25%

Quote from SteveD:

Read the book "Liar's Poker"...that explains how the industry started.....very few keep the loan....most packaged and sold "upstream" to investors such as insurance co, pension, college endowments etc etc...

There will be companies who buy the "troubled" loans from these investors and rework them....small companies with knowledge of the LOCAL real estate market...

I hope you loan money to someone who doesn't want/can't pay it back.....I am sure you will feel bad and give them some more money to ease their pain....


Think of all the people who were able to buy their first home...something they could not do anywhere else in the world...

Will some lose their home?.....sure and that is too bad....but society is much better off with the remaining ones who keep their homes...

There are "shake-outs" in any business.....


SteveD
More...

It doesn't matter if they keep the loan or not...if they don't keep the loans then no one is going to buy the packaged loans at a decent rate...look at LEND's bailout.

If they do keep the loans like some of the big guys they're hanging on to overvalued property loans...many negative am loans that aren't worth shit.

Also, the whole market will be choking off a class of people....supposedly 40-70%(depending on which execs from which companies you ask) wouldn't qualify today for the indexed loans they were qualifying for recently.

If that's not going to cause more houses to be dumped onto the market, cause jobs to get slashed, prices to get slashed, asset values to be written down, etc. then I'm not sure anything can harm this RE market...because that's like choking off supply at it's best source....about 50% of loans last year were ALT-A loans for a company like Countrywide...$600 billion in ALT-A loans...that's 30X their market cap.

I think you're being a bit naive and shrugging off some problems. Explain a solution please.
 
I have already lived through two of these rodeos....I have neither the time nor the inclination to try and explain it to someone who is not financially sophisticated....

Sorry...best of luck to you.....


SteveD
 
Quote from SteveD:

I have already lived through two of these rodeos....I have neither the time nor the inclination to try and explain it to someone who is not financially sophisticated....

Sorry...best of luck to you.....


SteveD
More...

Great copout there. I think you just showed your true colors. Have fun in denial. Just like the rest of them. :D

I'm sure that's why you spent your time to put together 3 or 4 paragraphs earlier huh? Good one stupid.
 
Blast,

Like I said, you talk but don't back it up.

I trade based on what the market is doing and invest in what I think is good value.

Let me give you an example-

I liked AMR back in 03 during that rough time for the airlines.

I started buying it at 11, bought again at 9 and 8. Then when it hit 7, I sold off and shorted it. Covered the short at 2 and then went long.

I have done the same with LEND, NEW, DRL, and CFC and NDE.

cheers.
 
Quote from traderich:

Blast,

Like I said, you talk but don't back it up.

I trade based on what the market is doing and invest in what I think is good value.

Let me give you an example-

I liked AMR back in 03 during that rough time for the airlines.

I started buying it at 11, bought again at 9 and 8. Then when it hit 7, I sold off and shorted it. Covered the short at 2 and then went long.

I have done the same with LEND, NEW, DRL, and CFC and NDE.

cheers.
More...

No offense but you've made a fool of yourself by trying to "school" CalScholar about buying up damaged companies like NEW(remember when you were LOADING UP?) and so you've pretty much lost all credibility.

Give it a rest joker.
 
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