orange county foreclosure: orange county foreclosure" "blood bath" - 09/02/07 03:41 PM
Is the term "blood bath" over-used and lost its impact? "It's a blood bath," said a VP at PIMCO about the
current market conditions. Yes, rates have crept up. Yes, property values have gone down in some over-inflated,
speculative areas of the nation, and the national median home price may have its first annual decline since the
1930's. Yes, some portions of the economy are slower than others: confidence among homebuilders fell in June
to the lowest since February 1991, according to the National Association of Home Builders/Wells Fargo index. But
overall consumer confidence is stable, rates are still low by … (2 comments)
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orange county foreclosure: junk mortgage bond - 09/02/07 03:38 PM
But possibly the bigger news is that S&P said that it would change its methodology for ratings hundreds of
billions of dollars in residential mortgage-backed securities, and review its ratings on hundreds of billions of
dollars in the more complex collateralized debt obligations based on those subprime loans. It is expected that a
lot of debt will be downgraded to junk status and may have to be sold at fire-sale prices. Therefore many
pension and hedge funds that once thrived on the high returns they could get from investing in subprime junk
are expected to lose a lot of money. The … (0 comments)
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