Comments on: 10am EST – Moody’s Hits Lehman Due To ALT-A…Here Comes The ALT-A Crisis! http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/ Your personal tour guide through the housing finance "misinformation maze". Thu, 14 May 2009 13:28:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Marc Authier http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/comment-page-1/#comment-466 Marc Authier Sun, 11 May 2008 05:47:53 +0000 http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/#comment-466 What will be the impact on the rest of the banking sector of the 500 billion fire sale by Citigroup ? Who is next ? What will be the impact on the rest of the banking sector of the 500 billion fire sale by Citigroup ? Who is next ?

]]> By: Marc Authier http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/comment-page-1/#comment-447 Marc Authier Sat, 10 May 2008 01:42:57 +0000 http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/#comment-447 Yeah it's called AIG and CITIGROUP. Warren's Buffet Wells Fargo is next. Yeah it’s called AIG and CITIGROUP.
Warren’s Buffet Wells Fargo is next.

]]> By: Gregor http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/comment-page-1/#comment-398 Gregor Thu, 08 May 2008 14:59:05 +0000 http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/#comment-398 Hi. Uhmmn. I'm not with any agency. My area is oil, and the global energy markets. But, I have to stay competant in all areas as I do play in the equity markets, and must stay abreast of risk there. I began worrying about the USA debt and credit situation in 2003. Curiously, problems in that area have created wonderful entry points in the energy sector for some time now. Especially in the last 12 months. I think there's more coming. Cheers, Hi. Uhmmn. I’m not with any agency. My area is oil, and the global energy markets. But, I have to stay competant in all areas as I do play in the equity markets, and must stay abreast of risk there.

I began worrying about the USA debt and credit situation in 2003. Curiously, problems in that area have created wonderful entry points in the energy sector for some time now. Especially in the last 12 months. I think there’s more coming.

Cheers,

]]> By: Mr Mortgage http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/comment-page-1/#comment-391 Mr Mortgage Thu, 08 May 2008 02:37:57 +0000 http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/#comment-391 Right Gregor...I do not think its any coincidence that the bank stocks hurt the most other than straight subprime players, are major option arm holders beginning with the American Home collapse mid 2007. WAMU, CFC, IMB, DSL, FED, WB, BKUNA, LEH, BSC are among the largest option arm holders and many of those are among the biggest borrowers at the FHLB of Atlanta who decided they wanted to lend against 'investment grade' pay option arms...that's for a different topic though. Negative equity is a killer across all loan types. It makes the prime loan subprime. By the way are you still over the the 'other' Agency? Right Gregor…I do not think its any coincidence that the bank stocks hurt the most other than straight subprime players, are major option arm holders beginning with the American Home collapse mid 2007. WAMU, CFC, IMB, DSL, FED, WB, BKUNA, LEH, BSC are among the largest option arm holders and many of those are among the biggest borrowers at the FHLB of Atlanta who decided they wanted to lend against ‘investment grade’ pay option arms…that’s for a different topic though. Negative equity is a killer across all loan types. It makes the prime loan subprime. By the way are you still over the the ‘other’ Agency?

]]> By: Gregor http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/comment-page-1/#comment-389 Gregor Thu, 08 May 2008 01:56:58 +0000 http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/#comment-389 What's poignant about your analysis is that Alt-A borrowers are also likely to understand finance, and the time value of money. A less educated borrower might be cowed, or, culturally coerced into sticking it out in a negative equity property. This would be much less true of the more educated borrower, or simply a borrower who has finance experience. The analysis of continuing to make payments on a property that has lost 30% of its value when, other positive opportunities exist for one's capital, is not that hard to make. Just go on to any chatboard and start talking about such an idea, and you will very quickly get a "sort" among responders, as to who gets it and who doesn't. The latter will often shout about Ethics and Values. Yeah, sure. It was funny listening to the Wachovia CC a couple of weeks back, with the top brass saying "Gosh, you know it's really fascinating to discover that the number one cause of default is not credit score, or jobs held, or cash flow--it's negative equity." Duh. What’s poignant about your analysis is that Alt-A borrowers are also likely to understand finance, and the time value of money. A less educated borrower might be cowed, or, culturally coerced into sticking it out in a negative equity property. This would be much less true of the more educated borrower, or simply a borrower who has finance experience. The analysis of continuing to make payments on a property that has lost 30% of its value when, other positive opportunities exist for one’s capital, is not that hard to make. Just go on to any chatboard and start talking about such an idea, and you will very quickly get a “sort” among responders, as to who gets it and who doesn’t. The latter will often shout about Ethics and Values. Yeah, sure.

It was funny listening to the Wachovia CC a couple of weeks back, with the top brass saying “Gosh, you know it’s really fascinating to discover that the number one cause of default is not credit score, or jobs held, or cash flow–it’s negative equity.”

Duh.

]]> By: Mr. Mortgage’s Guide to the TRUTH! » Fitch - Horrid Alt-A Performance Drivers Revealed http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/comment-page-1/#comment-374 Mr. Mortgage’s Guide to the TRUTH! » Fitch - Horrid Alt-A Performance Drivers Revealed Wed, 07 May 2008 20:48:55 +0000 http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/#comment-374 [...] Moody’s Hits Lehman Due To ALT-A…Here Comes The ALT-A Crisis! [...] [...] Moody’s Hits Lehman Due To ALT-A…Here Comes The ALT-A Crisis! [...]

]]> By: Marc Authier http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/comment-page-1/#comment-358 Marc Authier Wed, 07 May 2008 06:30:22 +0000 http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/#comment-358 With oil at 122$ and going very soon to 200$, I do not think the FED can do anything. At 122$ or at 200$ a barrel, the paper will fall to zero. Market forces will prevail. How in the hell can you bail out all this junk ? 6 trillion dollars with a puny 500 billion of reserves ? Bernanké like Paulson are jokers. Jim Rogers says that the FED will soon be bankrupt. I think he has a point. The FED is kaput. With oil at 122$ and going very soon to 200$, I do not think the FED can do anything. At 122$ or at 200$ a barrel, the paper will fall to zero. Market forces will prevail. How in the hell can you bail out all this junk ? 6 trillion dollars with a puny 500 billion of reserves ? Bernanké like Paulson are jokers. Jim Rogers says that the FED will soon be bankrupt. I think he has a point. The FED is kaput.

]]> By: CaptiousNut http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/comment-page-1/#comment-310 CaptiousNut Tue, 06 May 2008 00:49:39 +0000 http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/#comment-310 I asked my local subprime lender what he thought about Option One. He said that they would take his business even when he didn't have a license. I asked my local subprime lender what he thought about Option One. He said that they would take his business even when he didn’t have a license.

]]> By: John Borchers http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/comment-page-1/#comment-309 John Borchers Tue, 06 May 2008 00:40:39 +0000 http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/#comment-309 Frank, They can dump them on the Fed but they must be marked down reasonably before the Fed will take them i exchange for the treasuries. It's also only a short term loan. Before the fed would take it again it would need to be marked down if the value fell. Bernanke is out tonight raising the red flag about more foreclosers in 08 than 07. New Fed data also indicates bank loans are getting tighter as they should but this is not what most people want to see as it will stall the economy. Frank,

They can dump them on the Fed but they must be marked down reasonably before the Fed will take them i exchange for the treasuries. It’s also only a short term loan. Before the fed would take it again it would need to be marked down if the value fell.

Bernanke is out tonight raising the red flag about more foreclosers in 08 than 07. New Fed data also indicates bank loans are getting tighter as they should but this is not what most people want to see as it will stall the economy.

]]> By: john http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/comment-page-1/#comment-308 john Mon, 05 May 2008 23:17:40 +0000 http://mrmortgage.ml-implode.com/2008/05/05/10am-est-moodys-hits-lehman-due-to-alt-ahere-comes-the-alt-a-crisis/#comment-308 what is hrb? what is hrb?

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