this story seems to have been missed by everybody...
http://www.bloomberg.com/apps/news?pid=20601087&sid=azbpl3UtOiEw&refer=home
http://www.bloomberg.com/apps/news?pid=20601087&sid=azbpl3UtOiEw&refer=home
Wait A Second, Homebuilders Upgraded
- Thread starter S2007S
- Start date
I'm not convinced this is the case. They could be sincere.
If nothing else, the upgrades may create a tradeable pop.Back in the late '90's, I was working on the trading desk of one of the large west coast investment bankers. The founder/president had a ton of some crap stock in the firm's inventory. It had been going nowhere for quite some time. We came in one morning and, whaddya know, it had been added to the firm's recommended list. Got to move that inventory.
++++++++++++++++++++++++++++++++++++++++++++++BINGO..
The housing slump is still in the first inning.
Great article in Mondays WSJ about many banks, funds, etc returning many mortgages back to the mortgage companies where they originated. Many have claimed that once a mortgage has been sold and repackaged as a security and resold to someone else it becomes their baby. ...... NOT TRUE, the article said..........if a mortgage was written with a bogus appraisal, bogus income statement etc, it is a FRAUD and can go back to the original crook that wrote it.
This is just starting to hurt as many mortgages are seeing defaults.
The days of easy, no down payment, etc loans are going to need a couple decades before every mortgage co will be able to float their crap again.
We see these silly things blow up now and then. LOL
PS, gee is this a blow to the Bush "new ownership society" ..:eek:
Correction: Not "EVERY" mortgage company, surely many are honest and straight shooters. Bubbles bring out the worst in some people, but not all of us.
The housing slump is still in the first inning.
Great article in Mondays WSJ about many banks, funds, etc returning many mortgages back to the mortgage companies where they originated. Many have claimed that once a mortgage has been sold and repackaged as a security and resold to someone else it becomes their baby. ...... NOT TRUE, the article said..........if a mortgage was written with a bogus appraisal, bogus income statement etc, it is a FRAUD and can go back to the original crook that wrote it.
This is just starting to hurt as many mortgages are seeing defaults.
The days of easy, no down payment, etc loans are going to need a couple decades before every mortgage co will be able to float their crap again.
We see these silly things blow up now and then. LOL
PS, gee is this a blow to the Bush "new ownership society" ..:eek:
Correction: Not "EVERY" mortgage company, surely many are honest and straight shooters. Bubbles bring out the worst in some people, but not all of us.
Quote from DeepFried:
I'm not convinced this is the case. They could be sincere.
Back in the late '90's, I was working on the trading desk of one of the large west coast investment bankers. The founder/president had a ton of some crap stock in the firm's inventory. It had been going nowhere for quite some time. We came in one morning and, whaddya know, it had been added to the firm's recommended list. Got to move that inventory.
Didn't I see you in the movie Boiler Room?
The jobs revision was pretty egregious ...
"Will"? Sounds pretty definite.
I can use strong words too. There will ALWAYS be housing demand (albeit present fencesitters being scared away by the media). Mortgage rates, despite rises, remain at generational lows. There is a well entrenched secondary market for originations.
Secondly you're overlooking the very simple fact every share of stock has to be HELD by someone at any point in time.
Hovininian appears to have found support, perhaps temporary in the mid 20's. But a full third of the float is short and it's presently above that round number called $30.
Beazer's net change yesterday exceeded 4%
Each stock caters to a completely different end user. HOW toward luxury, fairly recession reistant. BZH, to first time home buyers. There is a never ending stream of them.
A real problem for NEW homebuilders is competing with an army of realtors re-marketing existing homes. But that's nothing new, just more pronounced.
When you go to the movie theater, do you often yell "fire"?