Mortgage Crisis Newz
- Thread starter N8 v2.0
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Homa, La, where there's a hot babe behind every hill!
IMO opinion we're already feeling bad trickle down from the banks decisions. Screw them and consumers they rode in on (who are just going to piss away the bailout $ anyway).
The banks whine about how the lack of a bailout will effect their ability to lend. Bull****. Their business IS lending money and if they want to continue they'll need to keep lending affordable and suck up their mistakes.
The banks whine about how the lack of a bailout will effect their ability to lend. Bull****. Their business IS lending money and if they want to continue they'll need to keep lending affordable and suck up their mistakes.
I think it is. Pricing is based on risk assessment and changing those risks after the fact is an extraordinarily dangerous precedent. The banks should absolutely not be bailed out.
I heard a superb proposal on NPR (from the Dean of the Haas School of Business, I think) for an intelligent aid package. Rather than wholesale giveaways of cash we don't have, which anyone with intelligence agrees does nothing but hurt, we buy into the mortgages of homeowners in distress, essentially becoming partners in the investment in their homes. This is based on the assumption that ultimately the housing market will bounce back somewhat and then return to stable, sustainable growth. This will help keep people in their homes, stabilizing neighborhood housing prices, and should actually be a minimum investment over the long term from the government as these houses should recover. In the event the houses actually do turn a profit, the government benefits from that, and the homeowner doesn't get to reap full rewards like they would in a straight bailout.
Is that a "Top 10 worst hell holes" list? You couldn't pay me to live there.
As far as the ripple being a good thing, I would say no after the report on the FDIC and it's lack of funds. If a bank loses it's ass, bad borrowers AND good borrowers lose.
If you could cover people who don't suck, then maybe. But if the FDIC doesn't have the funds to cover the people it's supposed to cover when a bank sh*ts the bed, that would be bad.
Which is what pissed me off so much about the bankruptcy reform the credit card companies got passed a few years ago...
I think I may have seen the same, or similar proposal to yours. The one other thing I thought was a good idea was to have a covenant in any loan that a borrower gets help on that would prevent them from a refinance that would increase the principal balance above the bailed out loan amount...
At this point, I don't see that selling $7Bil in new preferred stock is going to help them much. I'm not sure if this plan is still in action, it was last month. If they follow through shareholders are going to take it on the chin, and ultimately, the real problem will only be postponed.
Bear Stearns, Capstead, MBIA, Virgin Media: U.S. Equity Movers
By Fabio Alves
March 10 (Bloomberg) -- The following is a list of companies whose shares were having unusual price changes in U.S. markets. Stock symbols are in parentheses after company names, and prices are as of 1:10 p.m. in New York.
Ambac Financial Group Inc. (ABK US) fell the most in the Standard & Poor's 500 Index, dropping 21 percent to $7.55. The world's second-largest bond insurer raised about $1.5 billion in a sale of shares and convertible units, more than doubling its stock outstanding to salvage its AAA credit rating.
MBIA Inc. (MBI US), the world's largest bond insurer, slipped 8.3 percent to $11.
Bear Stearns Cos. (BSC US) sank 8.2 percent to $64.33 for its biggest decline since October 1999. The second-biggest underwriter of mortgage-backed bonds fell on speculation the company lacks sufficient access to capital. Russell Sherman, a spokesman for New York-based Bear Stearns, said in an interview that there is ``no truth to the liquidity rumors.''
Countrywide Financial Corp. (CFC US) fell 11 percent to $4.51, the lowest since April 1995. The mortgage lender under is investigation by the FBI to determine whether its officials misrepresented the company's financial position and the quality of its mortgage loans in regulatory filings, a person with knowledge of the probe said March 8.
Fannie Mae (FNM US) slid 12 percent to $19.99, the lowest since March 1995. The mortgage lender may have its solvency tested in the housing crisis because it has a balance sheet of ``soft assets and understated liabilities,'' Barron's reported, citing its own analysis.
Freddie Mac (FRE US), the second-biggest U.S. mortgage-finance company after Fannie Mae, declined 13 percent to $17.15.
Capstead Mortgage Corp. (CMO US), the real estate investment trust, retreated 11 percent to $10.54.
Nationwide Financial Services Inc. (NFS US) surged 26 percent to $47.77, the steepest gain since its initial public offering in March 1997. The Columbus, Ohio-based life insurer said it received a bid from its parent, Nationwide Mutual, for the outstanding Class A shares it doesn't already own. Nationwide Mutual proposed paying $47.20 in cash for each share, which represents a premium of 24 percent from the March 7 closing price, Nationwide Financial said.
Thornburg Mortgage Inc. (TMA US) dropped 43 percent to $1.02, the lowest since June 1993. The home lender was downgraded to ``underperform'' from ``hold'' by analyst Richard Shane at Jefferies & Co.
Virgin Media Inc. (VMED US) had the biggest gain in the Nasdaq-100 Index, rising 6.1 percent to $14.78. The U.K.'s second- largest pay-television operator is under consideration as a takeover target by U.S. private equity firms Blackstone Group LP, Kohlberg Kravis Roberts & Co., Cinven Ltd. and Providence Equity Partners Inc., the Observer reported yesterday, citing a document detailing the buyout plan.
By Fabio Alves
March 10 (Bloomberg) -- The following is a list of companies whose shares were having unusual price changes in U.S. markets. Stock symbols are in parentheses after company names, and prices are as of 1:10 p.m. in New York.
Ambac Financial Group Inc. (ABK US) fell the most in the Standard & Poor's 500 Index, dropping 21 percent to $7.55. The world's second-largest bond insurer raised about $1.5 billion in a sale of shares and convertible units, more than doubling its stock outstanding to salvage its AAA credit rating.
MBIA Inc. (MBI US), the world's largest bond insurer, slipped 8.3 percent to $11.
Bear Stearns Cos. (BSC US) sank 8.2 percent to $64.33 for its biggest decline since October 1999. The second-biggest underwriter of mortgage-backed bonds fell on speculation the company lacks sufficient access to capital. Russell Sherman, a spokesman for New York-based Bear Stearns, said in an interview that there is ``no truth to the liquidity rumors.''
Countrywide Financial Corp. (CFC US) fell 11 percent to $4.51, the lowest since April 1995. The mortgage lender under is investigation by the FBI to determine whether its officials misrepresented the company's financial position and the quality of its mortgage loans in regulatory filings, a person with knowledge of the probe said March 8.
Fannie Mae (FNM US) slid 12 percent to $19.99, the lowest since March 1995. The mortgage lender may have its solvency tested in the housing crisis because it has a balance sheet of ``soft assets and understated liabilities,'' Barron's reported, citing its own analysis.
Freddie Mac (FRE US), the second-biggest U.S. mortgage-finance company after Fannie Mae, declined 13 percent to $17.15.
Capstead Mortgage Corp. (CMO US), the real estate investment trust, retreated 11 percent to $10.54.
Nationwide Financial Services Inc. (NFS US) surged 26 percent to $47.77, the steepest gain since its initial public offering in March 1997. The Columbus, Ohio-based life insurer said it received a bid from its parent, Nationwide Mutual, for the outstanding Class A shares it doesn't already own. Nationwide Mutual proposed paying $47.20 in cash for each share, which represents a premium of 24 percent from the March 7 closing price, Nationwide Financial said.
Thornburg Mortgage Inc. (TMA US) dropped 43 percent to $1.02, the lowest since June 1993. The home lender was downgraded to ``underperform'' from ``hold'' by analyst Richard Shane at Jefferies & Co.
Virgin Media Inc. (VMED US) had the biggest gain in the Nasdaq-100 Index, rising 6.1 percent to $14.78. The U.K.'s second- largest pay-television operator is under consideration as a takeover target by U.S. private equity firms Blackstone Group LP, Kohlberg Kravis Roberts & Co., Cinven Ltd. and Providence Equity Partners Inc., the Observer reported yesterday, citing a document detailing the buyout plan.
no wonder the mortgage spread vs the 10 year is at 3% (3.43 vs 6.375), the highest in a looooong time. nobody wants mortgages, even those (supposedly) backed by Fannie and Freddy. and upping the limit on those (supposedly) backed loans to $729k is supposed to help?
hang on, kids, we're in for a bit of a bumpy ride...
Sub Prime debacle explained in stick figures:
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1
The last 10 frames were gold.
I loved the accountant's response, myself...
$ure it does.4% doesn't make it any less of a crappy place to live.