Archive for the ‘Subprime’ Category
IndyMac Chief Complains of ‘Panicked’ Market
Posted in CMBS, Federal Reserve, Foreclosure, Herd Mentality, Interest Rates, Liquidity, Real Estate, Recession, Subprime, U.S. on July 14, 2008 | 1 Comment »
Michael Perry [CEO of IndyMac] called the markets for mortgage securities “panicked and illiquid” in a letter to employees Thursday.
He said the lender has “very strong liquidity, a good amount of excess capital,” and added that “there are no realistic scenarios that I can foresee that would impair IndyMac’s viability.”
He goes on to say that [...]
Foreign central banks own 60% of Fannie & Freddie Debt
Posted in CMBS, Federal Reserve, Foreclosure, Herd Mentality, Interest Rates, Liquidity, Real Estate, Recession, Subprime, U.S. on July 13, 2008 | Leave a Comment »
I think that this will collapse the bond market regardless of whether they actually put it on the books. The implied guarantee is too well understood by the financial community. The government can always change its obligations on SS and Medicare. Those are not contractual. They are legislative, and more importantly, they are not owed [...]
Mortgage delinquencies up 62%
Posted in CMBS, Foreclosure, Herd Mentality, Liquidity, Real Estate, Recession, Subprime, U.S. on June 11, 2008 | Leave a Comment »
Interesting article by Amy McAlister of HousingWire today:
Borrowers more than 60 days in arrears on their mortgages hit a record high 3.23 percent for the first three months of 2008, TransUnion said — that’s up 8 percent over the previous quarter’s 2.99 percent average, and is a staggering 61.5 percent higher than the first quarter [...]
Level 3 assets jump at Merrill
Posted in CDS, CMBS, Foreclosure, Herd Mentality, Interest Rates, Liquidity, Real Estate, Subprime, U.S. on May 7, 2008 | Leave a Comment »
In a quarterly filing today, Merrill Lynch & Co. dislosed that Level III assets had jumped to nearly $70 billion, an increase of 70% over the same quarter of 2007. The firm also stated that more than $16 billion of this exposure is related to subprime. Definitely a sign of things to come though relative [...]
Goldman helps arrange financing for WaMu, Recommends Short Sale
Posted in CMBS, Foreclosure, Herd Mentality, Interest Rates, Liquidity, Real Estate, Recession, Subprime, U.S. on April 13, 2008 | Leave a Comment »
Goldman helped arrange the $7 billion in financing for Washington Mutual announced last week by a consortium led by TPG. Yet, Goldman’s research group predicts another $23 billion in losses (revising upward the projected per share loss for last year from $1.00 to $3.30), and is recommending a short sale of the stock (we [...]
It’s So Much Worse Than You Think
Posted in Bankruptcy, CMBS, Equities, Federal Reserve, Foreclosure, Herd Mentality, Interest Rates, Liquidity, Real Estate, Recession, Subprime, U.S. on March 4, 2008 | Leave a Comment »
March 3, 2008 (Motley Fool) – Right now, things look bad. Every day, the economic news looks worse. Unemployment has been creeping up. The service sector is shrinking for the first time in half a decade. Consumer confidence is declining.
The stock market’s performance of late reflects this news. The S&P 500 is down nearly 9% [...]
Risk still far from being priced into the market
Posted in Bankruptcy, Equities, Federal Reserve, Foreclosure, Gold, Herd Mentality, Interest Rates, Liquidity, Real Estate, Recession, Silver, Subprime, U.K., U.S. on January 29, 2008 | 1 Comment »
What amazes me is that investors are still bullish at the slightest bit of good news. Yet, they ignore the growing and very serious macro risks facing the global markets. The report on new home sales released today was an absolute disaster, yet the Dow was up 1.5% on rate cut hopes. [...]
