posted
I don't care who they are blaming, this is ugly and I think will stay at least this ugly for weeks.
Posts: 11304 | From: Fort Worth, Texas | Registered: Mar 2005
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posted
funny thing is my brother told me all his stops got triggered tuesday and he was pissed with yesterdays bounce. I told him...the weeks not over yet
then I made fun of him and told him "LOL they took your stock"
-------------------- "Simplicity is the ultimate sophistication" Posts: 4005 | From: Shaolin | Registered: Oct 2005
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posted
this "credit crunch" has a long time to go before it's fully played out:
Subprime problems spread AIG sees uptick in defaults in more credit categories. European investors feel the pain too. August 9 2007: 4:40 PM EDT
More than 2 million hybrid adjustable rate mortgages (ARMs) come up for reset this fall - peaking in October with more than $50 billion due.
Borrowers who took out hybrid ARMs in 2004 and 2005 to secure low "teaser" rates for the first two or three years of the loan may see their monthly mortgage payments climb by 35 percent or more.
Subprime ARMs issued during the last three months of 2006 could fare worst of all, with a projected foreclosure rate of just under 20 percent during the fall of 2011. That would mean a full one in five owners still paying off subprime ARMs from late 2006 - about 12,000 in all - would lose their homes. Many others from that group would have already lost their homes to foreclosure in the previous years.
posted
Fed injects $38 bln, conducts third operation Fri Aug 10, 2007 2:26PM EDT
By Tamawa Kadoya
NEW YORK (Reuters) - The U.S. Federal Reserve provided the banking system with $38 billion on Friday, the largest amount of liquidity since the days after the September 11 attacks six years ago, adding ample funds for the second day running as financial markets fretted over credit conditions.
The Fed also took the unusual step of making a rare statement after the first operation -- the first time it's done so since the September 11, 2001, terror attacks -- in an effort to calm investors' fears.
Central banks worldwide have now injected at least $326.3 billion in the past 48 hours to prevent markets from spinning into a global liquidity squeeze. Short-term interest rates spiked in response to banks' decreased willingness to lend to each other.
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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By Gillian Tett in London and Richard Beales in New York
Published: August 10 2007 17:51 | Last updated: August 10 2007 17:51
Why are the equity markets in a spin?
Why do we not know who is holding this stuff? (bad notes)
One key reason is that, in the past few years, bankers have used these mortgages to create financial instruments, such as bonds and derivatives, which have been sold to banks, insurance companies, pension funds and hedge funds in global markets, sometimes far away from the home of the underlying debt.
next phase? the credit card co's will start hiking rates...
i am looking for verification right now (on a rumor) that credit card debt in the US doubled over the last 12 months..
this was inevitable as people stopped getting second and third mortgages, but still couldn't live within their budgets...
OK, it's not doubled, it's double expectations:
Associated Press Consumer Credit Up in June By MARTIN CRUTSINGER 08.07.07, 3:24 PM ET WASHINGTON -
Consumers boosted their borrowing more than expected in June, reflecting another hefty jump in credit card debt.
The Federal Reserve reported Tuesday that consumer credit rose at an annual rate of 6.5 percent in June. It marked the second straight sizable gain. Consumer credit rose by an even larger 7.9 percent in May.
The increase was led by an 8.4 percent rate of increase for revolving credit, the category that includes credit card debt. The category that includes auto loans rose at a 5.3 percent rate, the same as in May.
Total consumer credit rose by $13.2 billion in June to a record $2.459 trillion. The increase was double what economists had been expecting.
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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posted
the problem is that the Fed keeps injecting cash...
and they aren't being very straightforward about the how and why of it...
this just puts off the inevitable...
i have been looking at the use of margin market wide for about two years now, and i kept seeing numbers that were WORSE than the '29 crash...
i don't think we are in for a crash, but i do think there was too much leverage in the markets...
i suspect the Fed knows things we don't...
i never suspected how much leverage was tied untraded securities.. that's a major portion of the problem... in one week? Thornburgs mortgage portfolios was "repriced" at about a 25% loss..
they have high quality jumbo mortgages..
say you are leveraged at ten to one, and your collateral loses 50% in one week? that's magnified at 10 to one on the market...
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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posted
americas LARGEST home mortgage provider - counrywide announce they are drawing down thier ENTIRE 11.5 BILLION dollar credit line to stave off thier liquidity crisis!! holy crap!!! no more credit for you!!! the sh!t has not begun to hit the fan!!!! YET!!!
Posts: 2503 | From: connecticut | Registered: Mar 2005
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quote:Originally posted by glassman: what i can't get over is all these talking heads that don't get it....
they keep saying earnings are good....
the debt load of our nation is unbeleivable...
mortgage foreclosures are double from last year.
i hear that 6% of americans are behind on their mortgages...
i'm looking for some verification to that rumor...
Me and a friend would have long discussions trying to figure out how they where proping this market up....FOR THE LAST 2 YEARS.
Credit card debt Housing bubble Inflation(that everybody seems to be denying) Fuel/energy(accross the board) Katrina And of course Iraq(at this point its just a crazy money pit)
-------------------- "Simplicity is the ultimate sophistication" Posts: 4005 | From: Shaolin | Registered: Oct 2005
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The average rate for a 30-year mortgage hit 6.44 percent last week after reaching a 45-year low of 5.21 percent in mid-June, according to mortgage titan Freddie Mac.
the date of this article is
More fall behind on mortgage Foreclosures may rise if job losses continue
Kelly Zito, Chronicle Staff Writer
Thursday, September 11, 2003
In the growing sub-prime category, which serves consumers with lower credit scores, mortgage defaults jumped to 12.99 percent from 12.4 percent
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