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Masterofdamoney_IHB

Masterofdamoney_IHB

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<p>The sky IS falling...</p>

<p><a href="http://news.yahoo.com/s/ap/20070816/ap_on_bi_ge/countrywide_mortgages_2;_ylt=AlTLEe53PNwb7LzQlj3p4QIE1vAI">http://news.yahoo.com/s/ap/20070816/ap_on_bi_ge/countrywide_mortgages_2;_ylt=AlTLEe53PNwb7LzQlj3p4QIE1vAI</a></p>

<p>If Countrywide goes under (which seems to be more of a WHEN than an IF at this point...), grab your ankles and hope for the best.</p>

<p>We are talking the BIGGEST mortgage lender in the country. Rates will skyrocket, further fueling the housing crash.</p>

<p>It will also instantly put probably 100-200+ other, smaller, wholesale lenders out of business on the same day.</p>

<p>Massive amounts of jobs lost. Tons of money vaporized from the economy. I'm bringing my umbrella in case it starts raining frogs today.</p>

<p>This has gone way beyond a housing crash at this point. We are looking at the complete meltdown of the US economy... scary times, folks.</p>
 
<p>masterofdamoney - May I respectfully disagree?</p>

<p>Countrywide aint squat. It's all about the yen and OTC derivatives now. Non-performance of credit default swaps and interest rate swaps are unseen and the effects have only started to be felt. And it is the world economy which is being threatened.</p>
 
<p>At its current rate of daily loss, the DJIA will be trading below 10000 by Sept. 1st.</p>

<p>And you are right, awgee, it's a global problem. But Americans are getting hit the hardest right now... and it affects me the most! :)</p>

<p>This feels like the end... of something.</p>

<p> </p>
 
<p>George Wills discussed this in today's Op-Ed piece, Folly and Fed. <a href="http://www.ocregister.com/opinion/morgan-borrowers-rate-1810293-subprime-reserve">http://www.ocregister.com/opinion/morgan-borrowers-rate-1810293-subprime-reserve</a></p>

<p>I tend to agree with him. </p>

<p>I also suspect, should CFC bk, we're see increasing demands for a bailout by the Pols. All will be ill advised.</p>

<p>That said, perhaps it's time for IR to revisit his extreme scenario on price decline. I doubt it's looking very extreme anymore. What will prices do if variable loans are floating at 9% and new loans come in at 9-10% if you only have 10% down?</p>
 
<p>Did anyone see Buffett's interview this morning ? When asked if he thought if the Govt should bail out struggling homeowners, he said "no". He said that if one invests in the stock market and a stock goes down, the govt doesn't get involved...same thing with derivatives...so why is the homeowner different from anyone else. I believe his best quote was, "This is capitalism folks". </p>

<p>Side note funny....the segment was called "Government Gone Wild".</p>
 
<p>>>>Did anyone see Buffett's interview this morning ? When asked if he thought if the Govt should bail out struggling homeowners, he said "no". He said that if one invests in the stock market and a stock goes down, the govt doesn't get involved...same thing with derivatives...so why is the homeowner different from anyone else. I believe his best quote was, "This is capitalism folks". <<<</p>

<p>If the governement does step in to bail out homebuyers underwater, I think it will absolutely be the biggest disservice to those that did <strong>not</strong> buy because homes were unaffordable with the standard loan type. </p>

<p>If the govt were to bailout careless homeowners, what will the bailout be for those that practiced due diligence and didn't take out IO or ARM loans because they knew they could afford it short term but not long term?</p>

<p>Just like the dot com bust, leave it to the free market and the lawyers. I got pennies on the dollar for one dot com stock from the big dot com lawsuit. I never felt for 1 second that the govt should have bailed me out.</p>
 
<p>Mish on <a href="http://globaleconomicanalysis.blogspot.com/2007/08/curve-watchin.html">watching the yield curve</a>.</p>

<p><em>As of now, Kasriel thinks as I do: "A recession is baked in the cake. It's simply too late for the Fed to do anything about it." </em></p>
 
<p>From the <a href="http://www.marketwatch.com">www.marketwatch.com</a> home page:</p>

<p>"This market is going down like free beer. ... I would say if there had been a day when we're trying to price in a worst-case scenario, this might be it."</p>

<p>Art Hogan, Jefferies &Co.</p>
 
<p>Wow, wish I know what happened today. Eating breakfast, I checked my email and the market, down nearly 200 pts. Go to work, check the market before a mid-morning meeting, down over 300 points. Come back from lunch and the market is whistling dixie with the market up, only to close down 15 points.</p>

<p> </p>
 
<p>The problem I have with ANY government involvement in personal financial matters is this:</p>

<p>No matter WHAT they do, it SCREAMS "The people are too stupid to trust with their own finances, so we will do it for them."</p>

<p>Giving government control of PRIVATE finances CANNOT end well. It is an absolute no-no.</p>

<p>And right now congress is trying to write laws that control how the banks determine if you are 'worthy' to lend money to:</p>

<p><a onmouseover="(window.status='Open link in new window...'); return true" onmouseout="(window.status=''); return true" target="_blank" href="http://www.brokeroutpost.com/loans/extclickverify.asp?url=http://www.govtrack.us/congress/billtext.xpd?bill=h110-3081">http://www.govtrack.us/congress/billtext.xpd?bill=h110-3081</a></p>

<p>Some choice items from the link:</p>

<p>`(C) VERIFICATION OF CONSUMER INCOME AND FINANCIAL RESOURCES- In the case of any consumer credit transaction secured by a consumer's principal dwelling, the income and financial resources of the consumer shall be verified for purposes of this paragraph by tax returns, payroll receipts, bank records, or other similarly reliable documents.





`(D) OTHER CRITERIA- No provision of this paragraph shall be construed as prohibiting reliance on criteria other than a consumer's income and financial resources to establish the reasonable ability of the consumer to repay any consumer credit transaction secured by the consumer's principal dwelling, to the extent such other criteria are also verified through reasonably reliable methods and documentation.





`(E) CONSUMER STATEMENT IS INSUFFICIENT PROOF- A statement by a consumer of the consumer's income or financial resources shall not be sufficient to establish the existence of any income or financial resources when verifying the reasonable ability of the consumer to repay any consumer credit transaction secured by the consumer's principal dwelling, for purposes of this paragraph.


</p>

<p>...

<p> </p>

</p>
 
<p>They have no problem turning the insurance and credit card industries loose on us.</p>

<p> But they need to protect us from lenders?</p>
 
Meanwhile, they have made it nearly impossible for people to declare outright bankruptcy. . . The government is not getting involved now to save people, it's to protect business interests. Cynical I know. . .
 
<p>Funny discussion on CNBC right now - about Bush getting involved.</p>

<p>Please.</p>

<p>No.</p>

<p>Anyone else - OK.</p>

<p> </p>
 
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