6.2.08 – Mr Mortgage’s News Picks of the Day!

Posted on June 2nd, 2008 in Mr Mortgage - News Picks of the Day!

This is something new I will be doing daily. All day long, I am reading press releases, getting emails regarding events happening etc. I forward stuff off to buddies and they forward to me and it becomes tough to keep track of it all.  I can’t comment on all of them but think many have a direct impact on the mortgage, credit and housing implosions. Therefore, in addition to my personal research, beginning this evening I am just going to aggregate what I consider to be the best stories daily for all of you with comments as necessary. This should free up a lot of my day and enable me to pass on great stuff, which you may not get or have time to check out on your own, to all of you. -Best, Mr Mortgage

Wachovia CEO is Out! – Bloomberg. This is payback from the Board of Directors for not understanding how Pay Option ARMs are so toxic they will take any bank down, no matter how strong, eventually.

Spike in Foreclosures Goes Beyond Subprime– Barry Ritholtz.  I have written about this too many times to mention. Look through the blog.

In Foreclosure Capital, 3 of 4 Home For Sale is a Foreclosure – MSNBC/Blown Mortgage . Actually I thought this would be worse. We already know that 38% of all home sales last month were out of the foreclosure stock and that number keeps rising every month. America’s residential real estate is being marked to market overnight by lenders dumping homes at massive discounts. See my April Foreclosure Report for more on this topic.

Wall Street Says -2 + -2 = 4 as Liabilities Get New Bond Math– Bloomberg. One word…’crooks’.

S&P Lower the Rating of the Major Brokers…Stocks Tumble – Bloomberg. This one just really confused Dennis Kneale on CNBC. He just said ‘I thought the credit crisis was getting better’. The guest said ‘so what, these companies will never earn what they used to and they are all in trouble’. This one wasn’t to tough to figure out. Heck, even I said last year that with securitizations, IPO’s, and revenue from every acronym under the sun suddenly gone, where are they going to get their revenue from??? Day Trading?

Another Stated Income Loan is Discharged in Bankruptcy – Conglomerate. This one is from CA. The lenders thought that they could push off fraud to the borrowers and judges across the nation are not seeing it that way. “She questioned whether industry guidelines on stated income loans were objectively reasonable.  The minimal verification for stated income loans suggests that they’re essential asset-based loans–loans made in reliance only on the value of the collateral!”

4 Responses to “6.2.08 – Mr Mortgage’s News Picks of the Day!”

  1. Incompetent Ivy-Leagued educated management.Welcome to the the “inner ring”of incompetents.Next will be the inner ring of incompetent doctors-then what?
    As long as real talent and honesty are excluded from the financial canyons of Wall Street-then a solution will be avoided to the damaging collapse of finance.Way to go guys.

  2. I’m beginning to get the strange feeling that it is perfectly obvious to tons of people on Wall Street that things are not going to get better and that instead of trying to make things better, they are simply going whole hog towards insolvency, while trying to keep it as quiet as possible for as long as they can in an effort to make sure their own nests are nicely feathered before everything goes down in flames.

    Kind of like when you know you’ve over-spent, but you’re not sure by how much so you figure, “Why not just spend more while I’m at it? I’ll find out how bad it is later, and when I do, I’ll have already spent the money and that can’t be taken away from me..” Sort of like, “Eat, drink, and be merry, for tomorrow we kick the bucket.”

    Does anyone else get this kind of feeling that this is what is happening? Because frankly, I can not understand how the financial machinations of these banks and hedge funds is going to do a bit of good. I am probably just ignorant.

  3. We are “too big to fsil” and besides that we have a sugar daddy in Saudi Arabia, a uncle in Singapore and a whole lot of very nervous politicians that owe us big. So why bother with crass considerations like these ? Everybody needs us. If we go down, they will all go down even harder. Blackmail à la Bear Stearns.

  4. Failure is not an option here. Pump and dump is.

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>