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why such Huge Losses if the Loans are COLLATERIZED?
- Thread starter chewbacca
- Start date
)Quote from chewbacca:
wall street to Ben: we want and we need a rate cut. that was the message sent via today's close.
How about average people want a rate increase. Inflation is killing middle and lower income family. Price has been going up so much in the past year and yet income hasn't increase much. If the rate is cut, I am sure the price will increase more.
Quote from bdon:
you guys might want to check the detroit housing market where mortgage defaults are at a serious high. Banks are dumping well below market. Home values are not holding what so ever.
one example a home in Bloomfield Hills market value of $535,000 supposedly. Nicest area in the suburbs with one of the best public schools. The house went at a liquidation auction for $138,000. Theres stories like this all around the city. my county alone has 700 homes on the market with nearly 300 in foreclosure.
Yep.
Baltimore?Washington Maryland market is one that woudl generally be considered almost liquid real estate, except that the prices jumped up like the dot coms in 2000. Now, prices are down 10%ish, more in some cases. People maxed out with first and second mortgages and then when the value dropped and they struggled to pay as interest rates increased, it was easier to just bail out by defaulting. It is their only out in some cases. can't sell and still have the mortgage paid off. Homes are on the market a long time now, months and months, because they are overpriced. People want what they could have charged for their house two years ago, but that's not reality now.
Even when a bank makes a repo on a house, they lose money. Not to mention when the market goes to hell, and the bank repos the house...who are they gonna sell the house to to recoup their money?
equity in a house is theoretical/potential profit...you don't get any money unless you sell it...
so not to mention lots of money spent in legal proceedings in a foreclosure....the bank will almost surely lose money as well due to the fact that the housing market in general is in the shitter right now-so no one is buying (relatively speaking).
equity in a house is theoretical/potential profit...you don't get any money unless you sell it...
so not to mention lots of money spent in legal proceedings in a foreclosure....the bank will almost surely lose money as well due to the fact that the housing market in general is in the shitter right now-so no one is buying (relatively speaking).
Quote from piezoe:
It is my duty to come to Trendy's defense here. I am sure you are aware that economies of major nations do not turn on a dime. It is Greenspan's Fed that expanded the money supply dramatically in 2003, just before an election, can you imagine that? And it is very much the liquidity-housing-building-mortgage lending-bubble that Greenspan's, Not Bernanke's, policies spawned that is causing current economic problems and the market to plunge. Bernanke, if he proves to be a genius, might even be able to help us get out of this mess.
not to mention that Greenie felt compelled to bullhorn the positives of ARMs, right before IRs bottomed.
its the USD or Real Estate. cut rates & the USD takes it on the chin, raise rates to support Buck, & real estate gets worse. this blip is happening with high employment & low rates; lenders/warehousers are getting "margin calls" due to leverage... so then the borrower (lender holding loans) is in technical default, since they cant raise cash, 'cause there isnt much of a market for subprime & Alt-A loan ports. i kinda think its the leverage getting unwound more so than huge default/foreclosure losses - although, those could be right around the corner. and if it starts self-perpetuating, itll get ugly
Mauldin has some pretty sobering figures on resets - second article:
http://www.frontlinethoughts.com/pdf/mwo080307.pdf
These last weeks yields tanked but mortgage rates didn't to speak of. That's a dangerous disconnect I don't recall happening before.
Maybe, as Mauldin says at the end of his article, the credit market turmoil will pass quickly - it better.
http://www.frontlinethoughts.com/pdf/mwo080307.pdf
These last weeks yields tanked but mortgage rates didn't to speak of. That's a dangerous disconnect I don't recall happening before.
Maybe, as Mauldin says at the end of his article, the credit market turmoil will pass quickly - it better.
risk premium's haven't been tacked on yet cdo meltdown
Quote from Enfinity:
Quote from arealpissedgoy:
08-04-07 01:00 AM
Absolutely correct. I'm glad someone, somewhere, has some common sense. A vital ingredient for life success much lacking amongst the stupid masses.
If you want to see how the Major US cities will look like in 15 years, go visit Detroit and the broken bridge in Minnesota. $1 Trillion of borrowed money to wage a now very obviously futile war, a rapidly disappearing manufacturing economy and a public adoringly obsessed with good looking, pea-brained, corrupt politicians. The more corrupt they are, the better the chances of being voted in.
As I have repeatedly stated in many of my posts, get ready for a global depression. The US is entering a prolonged depressionary era. It won't be this year, or next year. But it will come soon enough when the USD is finally unpegged from Crude Oil. In the meantime, be patient . Start lifting the offer when the Fed cuts rates. One might as well enjoy the last leg of the joyride.
?
Looks like global depression will be averted.
http://www.reuters.com/article/newsOne/idUSTRE49N1XX20081024
U.S. has plundered world wealth with dollar: China paper
BEIJING (Reuters) - The United States has plundered global wealth by exploiting the dollar's dominance, and the world urgently needs other currencies to take its place, a leading Chinese state newspaper said on Friday.
The front-page commentary in the overseas edition of the People's Daily said that Asian and European countries should banish the U.S. dollar from their direct trade relations for a start, relying only on their own currencies.
Asians and Europeans are feverishly working to decouple the Crude/USD peg.
When that happens, sell everything you have in the US and move to mexico.
Without the peg and the ability to export the USD inflation, the US economy will spiral into a "mad max" world.
most of their voters have more guns than brains.
On another note, It looks like the insufferable, half witted, racist and perennial loser wanna-be-a-trader who moderates this forum deleted my original post.
Do any of these moderators actually trade for a living? If not, why are they then allowed to moderate a traders forum?
want to see a American traitor? It's anyone who votes for a republicon and their neocon master.