Even in England! - 08/30/07 03:07 PM
The US subprime market isn't just spilling over, it's rippling all the way across the sea to London. The Guardian reported today that the pound took a fall because a major bank had been forced to borrow $1.6 billion pounds to "see it through a cash-flow problem related to the US sub-prime … (3 comments)
|
Mitt's Judgment in Question (or is it?) - 08/29/07 06:16 PM
ATTENTION: The Fed is taking appropriate action! Yes, the Fed (who thought this mess would quietly blow over) is going to save the day! This is according to Mitt Romney (Republican Presidential Candidate), the same person who thought Larry Craig would be a good Senate liaison! (Hey, I'm from Idaho, I … (1 comments)
|
The Ripple Effect - 08/28/07 08:13 PM
I think even the Fed now agrees that we're in a bit of a jam regarding credit issues. The subprime meltdown is no longer "contained" (was it ever...except in the Fed's fantasy world?). This latest report shows evidence of more spillover as bankruptcy rates climb and credit card defaults grow.
"Part … (3 comments)
|
News Clips and Stuff - 08/28/07 07:09 PM
Here are a few stories that I thought were important. Quotes in bold from the stories. Other text is my own brilliant commentary. And a surprise thrown in for good measure (a test of sorts).
From Reuters 8/28 "Tighter lending standards in recent months have hurt business at two-thirds of the nation's … (2 comments)
|
The Safe Survive - 08/28/07 09:59 AM
I mentioned earlier that I was working with Wachovia on some projects. They seem to be one of the best (and healthiest) of the lenders around today. I was not surprised to learn that Wachovia's ability to thrive is realted to its large holdings of first lien mortgages (the safest position … (1 comments)
|
When is a Gain a Loss - 08/27/07 04:20 PM
From the title, you might think this is a commentary on the differneces between Republicans and Democrats (or Rush Limbaugh and...um...anyone sane and balanced). I love how they talk about "tax cuts" versus increases in funding that aren't as much as they used to be. When I was interested in raw politics, I … (4 comments)
|
Mortgage Crisis and Terrorism - 08/27/07 12:01 PM
A lot of folks agree that the press oversensationalizes things, which certainly seems to be the case with their dramatic images, deep gravely voice-overs and hyperbolic slogans. So I read with some scepticism the latest story which comes with this chilling headline: Rising defaults and heavy debt pose greater risk to … (4 comments)
|
CNN's New Tag - 08/27/07 10:54 AM
CNNMoney.com has a new tag line. It's called "Mortgage Meltdown 2007". Catchy title, isn't it? Makes me wonder why they insist on sensationalizing things like this...but then I remember, they're in the ratings and revenue business and that's all part of the game.
So the real news is that home sales slipped … (3 comments)
|
Countrywide Comeback - 08/24/07 05:16 PM
I've read from several folks that the thought of Countrywide going "under" is as likely as the sun not rising tomorrow (but don't ask Al Gore his opinion on that one).
I know the likelihood of Countrywide taking a bath is on the less-likely side of things, but reality is it could … (6 comments)
|
NY Times Article on Legislation Being Too Late - 08/24/07 03:35 PM
Great piece by the NY Times. The point to the article (which is worth reading) is that legislation to help protect borrowers from the dangers of subprime financing is too late to help. http://www.nytimes.com/2007/08/24/business/24states.html?_r=3&ref=business&oref=slogin&oref=slogin&oref=slogin A few highlights (for those who like the executive summary):
"The Mortgage Bankers Association reports that 550,000 homeowners with subprime … (0 comments)
|
The Fed's Acknowledgment - 08/24/07 11:02 AM
I know sometimes I get hung up on the past...but it has irked me like nothing else to hear professionals and so-called experts say that the mortgage crisis is "contained". These folks knew or should have known how bad this crisis was (and if they didn't know, they weren't really doing … (0 comments)
|
Home Sales RISE - 08/24/07 10:58 AM
Holy cow (sorry...the Idaho in me comes out once in a while). I was amazed when I saw this report that new home sales in the US "unexpectedly" rose for the second time this year "suggesting the housing market was stabilizing". http://www.bloomberg.com/apps/news?pid=20601087&sid=aLdFv9P6imE8&refer=home
The article states that purchases increased 2.8% last month … (0 comments)
|
More Housing (Bad) News - 08/22/07 03:00 PM
Toll Brothers reports that profits in 3Q fell 85%, but the results reportedly exceeded analysits' estimates. Still, that's a HUGE drop to teh tume of about $150M in lost NET income over last year! The "no duh!" quote of the day comes from CEO Robert Toll who reportedly said that the … (0 comments)
|
Another Exciting Lawsuit - 08/22/07 10:03 AM
If you're not familiar with the Mortgage Lender Implode-O-Meter (http://ml-implode.com/), you should be. It's an interesting blog providing centralized access to a growing list of failing lenders. Obviously there's nothing great about failing lenders (but there are some who, arguable, are getting what they asked for), but it's also nice to have … (6 comments)
|
No Spillover - 08/21/07 05:43 PM
One of the funniest things about "experts" and journalists is their propensity for speculation couched as certainty. For example, the numerous references to "containment" of the mortgage crisis and the certainty that there would be "no spillover". Take, for example, the amazingly ignorant statement from Ben Bernanke when he said "we … (0 comments)
|
More Job Cuts - 08/20/07 04:49 PM
It's been a rough few weeks for employees of certain mortgage lenders. The latest report is that Capital One is cutting 1,900 jobs and will no longer make mortgage loans through brokers. Earlier, SunTrust announced plans to cut 2,400 jobs by the end of next year (although they don't attribute cuts directly … (3 comments)
|
Wall Street Perspective - 08/17/07 06:04 PM
I thought this well written article from the AP contained some very good perspective about current market conditions and the Dow's rather eratic performance. While there has been some hope (something I see as an exceptionally fragile silver lining), this quote seemed rather appropriate: "What the Fed did was about consistent … (2 comments)
|
The Predictable Ups and Downs of Press Folk - 08/16/07 03:27 PM
On 8/14 I wrote this little ditty (http://activerain.com/blogsview/174089/More-Genius-From-the) in which I said "I'll bet as soon as the Dow goes up again, some savvy reporter will be telling us that the markets have rebounded on easing fears with the mortgage and credit markets. "
I'm dying with laugher...because it was only 2 days … (0 comments)
|
Follow up with Dow Predictions - 08/16/07 08:01 AM
My earlier post had some bad news about First Magnus possibly closing its doors (they're not funding loans today...but that's not necessarily a total shutdown...yet).
In light of this news and yesterday's Wall Street freefall, the Londoners are predicting the Dow will open down 125 points. It could be another rough day. … (2 comments)
|
And another one down...First Magnus - 08/16/07 07:34 AM
Here's the story on First Magnus (I just saw them at a trade show...seemed like it was "business as usual"): "An e-mail Wednesday evening told branch managers of Great Southwest Mortgage, the retail arm of First Magnus, that the parent company was no longer funding loans." The full story can be … (3 comments)
|
Home Prices Drop? - 08/15/07 10:14 AM
I love to see how the NAR spins things...and they ALWAYS seem to be spinning. For example, this latest story from CNNMoney.com (http://money.cnn.com/2007/08/15/real_estate/NAR_home_prices_lower/index.htm?postversion=2007081510) states that "During the second quarter, the median single-family home price was $223,800, 1.5 percent less than a year ago, according to the National Association of Realtors (NAR). … (2 comments)
|
Countrywide on the Ropes - 08/15/07 09:55 AM
For the nation's largest lender, the threat of bankruptcy seems impossible...but that's exactly what this Bloomberg article suggests. It's not only possible, but it's "likely if Countryside loses access to short-term financing." On one hand, this article underscores the ripple effect felt countrywide from the subprime fiasco. Take a look: http://www.bloomberg.com/apps/news?pid=20601087&sid=a.z7iz3TxD4M&refer=home. … (5 comments)
|
More Genius From the Press Corps! - 08/14/07 05:13 PM
I love this intro paragraph: "Stocks slumped for the fourth straight session Tuesday on fresh worries about the mortgage and credit markets..." (emphasis added).
Is there really anything "fresh" about the mortgage and credit markets? I'll bet as soon as the Dow goes up again, some savvy reporter will be telling us … (2 comments)
|
Real Estate Law - 08/14/07 12:35 AM
Having read a few posts this evening, I feel compelled to remind folks that spending a few dollars up front on a good real estate attorney (when needed) can save you untold misery (and money) down the road. I know folks don't like hiring attorneys. They can be expensive (and sometimes … (3 comments)
|
Tightening Standards! - 08/13/07 04:56 PM
OK, so I'm prone to sarcasm at times. Here's the latest article to elicit a sarcastic response. The news article proclaims that "a majority of the nation's banks have tightened lending standards on subprime mortgages". No way! Are you serious? Was a special study commissioned for this report? Were experts called … (1 comments)
|
Market Fears - 08/13/07 04:36 PM
I'm so tired of news reporters and "experts" saying that stock market gains are "due to easing credit concerns"...only to be followed by a crash "due to subprime meltdown spillover". Some of these reporters must be on medication...and not the legal kind. If anything, we should know now that the market … (4 comments)
|
A Tribute to My Brother, Todd Romrell - 08/09/07 01:13 PM
My older brother Todd passed away just a couple days ago after a long battle with cancer. Todd's family continues with his beautiful wife Cindy and their five children. I did a Google search for Todd Romrell and didn't find anything about my brother. In one sense, I think that's a … (17 comments)
|
Bear Stearns Executives and the Crystal Ball - 08/08/07 12:47 PM
BSC is up today on Wall Street but its 52 week high was $172 and it is trading today around $123. I just read today that four BS executives cashed out at the top of the market for about $57million, which means they would have taken a $16million bath if they'd held their stocks a … (4 comments)
|
Cramer's Meltdown (if you haven't seen it yet...it's a MUST SEE!) - 08/08/07 12:14 PM
I was traveling at the time, so my apologies for not posting this sooner, but if you haven't see Jim Cramer's meltdown while talking about the Fed and Bear Stearns, it's worth a watch. This guy must have had some serious money (or clients' money) wrapped up with Bear Stearns or … (2 comments)
|
Home Sales Slip - 08/08/07 12:08 PM
The NAR is predicting that existing home sales will hit 6.04 million this year, down from their earlier prediction of 6.11 million. The bad news is that NAR's change is in the downward direction. The good news is that they're still predicting millions on existing sales! Yes, the market is down, … (0 comments)
|
Buying...Subrime??? Wow! - 08/02/07 02:03 PM
This is a shocker, but it really makes sense. According to a new Bloomberg article, Prudential Financial is still buying securities backed by subprime mortgages. The article quotes Prudential Vice Chairman as saying that subprime-backed secruties are "disproportionate to the underlying risk and are primarily liquidity-driven...As a consequence, we see selective … (1 comments)
|
News Clips - 08/01/07 07:20 PM
How's this for scary: "Bear Stearns said after the collapse of two subprime-related hedge funds last month that it has halted redemptions from a third hedge fund invested in Alt-A and prime mortgages after worried investors wanted to pull out their money."
And this...IndyMac's defauls QUADRUPLED! "IndyMac Bancorp, one of the US largest … (0 comments)
|
Blaming Subprime - 08/01/07 06:00 PM
Every time I hear some well educated pundit, politician or industry executive talk about no "spillover" in the subprime market (or "containment", the new word-of-the-day) I have to laugh. Look at the intro paragraph from this article, the very antithesis of containment:
"Railroads, chemical producers and insurance companies are blaming the worst … (2 comments)
|
Mortgage Apps Down - 08/01/07 03:57 PM
What a wild ride for the Dow this last week! News about American Home Mortgage hurt the market but then the Dow was up 150 points just moments ago apparently due (in part) to NAR's pending home sales report shoing a 5% jump. The more I follow the housing and credit markets, … (0 comments)
|
Housing Rebound? - 08/01/07 09:51 AM
It's far too early to tell whether this statement from a Bloomberg article is accurate: "Today's report [that pending home resales rose 5 percent in June] suggests weakness in the housing market may not get much worse. Economists expect housing to gradually exert less of a drag on economic growth through … (8 comments)
|
;)
Links;)
Archives
