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Thread: The sky is falling...

  1. #11
    C-2
    What is the repayment schedule on $11.5 billion dollars anyways? :jawdrop:

  2. #12
    ULTRA26 # 1
    Today's news
    Thursday after investors were shaken by problems at Countrywide Financial Corp. that confirmed fears of widening credit problems and after the Federal Reserve injected $17 billion of liquidity into the banking system.
    http://news.yahoo.com/s/ap/20070816/...re/wall_street
    Housing starts fall to 10 year low
    http://news.yahoo.com/s/nm/20070816/...usa_economy_dc

  3. #13
    C-2
    They got a good interest only loan.
    Yeah, really.
    So if they default on any of their new new loans to cover the loans they are making - does the company get arrested for a Ponzi or kiting scheme? lol

  4. #14
    Mrs. Bordsmnj
    I am not so bright when it comes to mortgage loans and stuff because our mortgage is private but why are all the loan companies going under? Because they made loans to people who are now defaulting?
    I know, I sound dumb. So what. :mix: :squiggle:

  5. #15
    Freak
    They took your mortgage and packaged it into a Hedge fund. In this package there might be some sub primes, arms ect in with you and sold it on the market to investors around the world. - small part of the result is the arms reset and the home "owner" could not pay so they walked. Now the "investment" is junk cause it was based on the fact they the "owner" would repay. The fund is junk. No one know's if what is in it has any value.
    In a nutshell A loaned 20 to B who promised to pay back 25 next tuesday B loaned 15 to C who promised to pay back 25 next tuesday C loaned 10 to D who promised to pay back 25 next tuesday D loaned 5 to E who promised to pay back 25 next tuesday . Well its next Tuesday and E told D to go suck on a rock you loan shark . So everyones paper profits just went up in smoke and they are all broke and angry.
    This is causing panic selling AROUND THE WORLD.
    Now cash is king....if your liquid you can buy stuff on the market cheap. All we need now is a run on the banks......:sqeyes:

  6. #16
    Freak
    Oh....and take a look at the following schedule of billions of dollars in ARMs that will reset per month
    Jan 07
    $22 bn
    Feb 07
    $25 bn
    Mar 07
    $35 bn
    Apr 07
    $37 bn
    May 07
    $36 bn
    Jun 07
    $42 bn
    Jul 07
    $43 bn
    Aug 07
    $52 bn
    Sep 07
    $58 bn
    Oct 07
    $55 bn
    Nov 07
    $52 bn
    Dec 07
    $58 bn
    Jan 08
    $80 bn
    Feb 08
    $88 bn
    Mar 08
    $110 bn
    Apr 08
    $92 bn
    May 08
    $76 bn
    Jun 08
    $75 bn
    Jul 08
    $50 bn
    Aug 08
    $35 bn
    Sep 08
    $26 bn
    Oct 08
    $20 bn
    Nov 08
    $15 bn
    Dec 08
    $17 bn
    Taken from Ty Andros' latest TedBits: http://www.safehaven.com/article-8143.htm
    If there is trouble in the financial markets now, it will sure continue during the spring of 2008!

  7. #17
    HocusPocus
    I am not so bright when it comes to mortgage loans and stuff because our mortgage is private but why are all the loan companies going under? Because they made loans to people who are now defaulting?
    I know, I sound dumb. So what. :mix: :squiggle:
    thats pretty much it, lots of folks walking away from their homes or losing them because they are unable to pay and it leaves the lender holding the bag. at first it was mainly the subprime lenders that were having the problems but american home mtg didn't deal in subprime loans and it went under. now the largest in the nation is on the brink. there is rumor that the feds may lower interest rates as soon as next month but i don't think that will help much with the way things are going.
    just read this in part of an article on countrywide.
    Credit rating agency Moody's Investors Service downgraded Countrywide's senior debt rating to "Baa3" from "A3," citing Countrywide's funding problems.
    A ratings downgrade essentially makes it more expensive for a company to borrow money. Countrywide could be further downgraded if it continues to face liquidity problems, Moody's said in a statement.
    The new rating is Moody's lowest investment-grade mark. Any downgrade would take Countrywide into "junk" status, which would keep many large institutional investors from owning its debt.
    seems most banks are not ready to start selling off the homes to cheap but how much longer before they give in and start liquidating these places? then will that bring home values down even further? time will tell.

  8. #18
    Freak
    Now first question I have to you folks is:
    You are probably aware of all the cash the fed is injecting into the market over the last few days to try and keep things a float. (and it's not working) Something like 60 billion. At what point is it considered price fixing? For anyone trying to short the market they are getting pinched by the fed.
    Next one is when do you think the results will start to show. Example all the pensions that are heavily invested in the junk funds are now gone. Yes sir your pension is gone.

  9. #19
    C-2
    My question is they are banks, who make money by lending.
    They have tightened, and will continue to tighten, the qualifying standards. At some pointy (maybe now?), most people will no longer be able to qualify for a loan, based not only on new underwriting criteria, but also LTV values since prices have dropped and equity is gone.
    Which means the lenders will not be writing new loans, and thus not making any money (and let alone dealing with all the leftovers).
    WTF are they going to do, and when will it get better?
    What are you industry peeps being told?

  10. #20
    Freak
    Although he is a megalomaniac Cramer actually had a decent analysis of what Bernake and the FeD are up to:
    http://www.thestreet.com/s/how-berna.../10374163.html

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