Regarding Lennar, yes it was a fire sale, and yes they still have a smaller debt-to-cap ratio than peers (though it did, in fact, inch up since last quarter).
They still haven't taken significant impairment charges. And they did not give their balance sheet in the release (this may be SOP for them, I'd have to look at old releases to be sure).
In any case, they still haven't taken significant impairments. Their financial condition will continue to deteriorate as, like other highly leveraged builders, they try to play out this string a bit longer while housing bottom deepens.
I can't see it. The inflation is coming from overseas (okay, not the "core" inflation, just the inflation that everybody has to worry about like food and gasoline), and if the Fed eases, a hell of a lot more of it is going to be coming from overseas.
Bernanke is clearly on record as an inflation fighter. He won't ease.
How about we give Gretchen, Bloomberg et. al. 48 hours to fix their mistakes and ensure they're accountable by creating a CCO for them(Collateralized Correction Obligation)
""In April, sales of new single-family homes jumped by more than 16 percent to a seasonally adjusted annual rate of 981,000 units"
Now they are revised down to 930,000 annual pace in April......"
Right on, Yal. That original April number got lots of coverage and the markets jumped big on the "bottom of the housing slump" theory. Now we find ... oops ... not so big a jump in April, after all.
Well, sometimes the Bear gets You -- but sometimes You get the Bear (Warning this is not an incitement to illegal action either ... the rangers wrote this guy a $75 ticket when they came over after the fact)
Everhart was toasting marshmallows with his three sons at the Low Gap campground near Helen when a bear shuffled into the area and tried to make off with their cooler. When the bear started growling and coming toward his youngest son, Everhart said, he threw a piece of firewood at it, and his aim was perfect: It killed the bear on the spot.
June 26 (Bloomberg) -- ....(Justice) Alito has emerged as the justice friendliest to the interests of corporations. He sided with the U.S. Chamber of Commerce, the nation's largest business lobby, in 13 of 14 cases this term, more often than any of his colleagues. He cast votes to limit punitive damages, ease regulation and restrict suits by investors, consumers and alleged victims of job bias.....The court under Chief Justice John Roberts ruled against the chamber in only two cases, both environmental fights....his support for business, breaking with the chief justice by backing restrictions on the....power of states to regulate national banks....barred states from regulating the mortgage-lending subsidiaries of federally chartered banks....Alito also went further.... in voting to raise the bar for shareholder lawsuits.... And in a second investor case, the justices threw out an antitrust suit accusing Goldman Sachs Group Inc., Merrill Lynch & Co. and other investment banks of rigging 900 initial public offerings....
A common thread in those rulings was an unwillingness to let cases go before a jury....The court is saying, ``we'll trust the executive branch, we'll trust Congress a little bit, but we really don't trust the American people to do what's right when they sit in the jury box,'' White said....
``The court overall is good for business,'' ...
(end quote)
Thak you again, Ralph Nader, for all your fine work in getting GWB elected!!!
I recall from my short inglorious career in the Insurance Industry that businesses will move heaven and earth to avoid law and embrace equity, just so that they don't face juries (that's in Common Law jurisdictions -- your mileage may vary in Code Napoleon states).
The consideration given by us in exchange for these assets was not negotiated at arms-length and may exceed the values that could be achieved upon the sale or other disposition of these assets to third parties, it said.
I think this note from the prospectus says it all. Btw, analyst Charles Peabody who was quoted in the article, has been at the game for many years and set up his own firm after basically being fired for being a straight shooter (and no, I am not in any way affiliated with him).
arbogast said: "...Bernanke is clearly on record as an inflation fighter. He won't ease."
In the mid-cycle slowdown of the mid-90s the Fed eased when real U.S. GDP fell to current levels. Also, inflation simply isn't that high (current CPI-U 2.7%, long-term median 3.5%) so the Fed has room to ease without serious inflationary consequence.
"AAA? You were wooed Mr. Moody's and Mr. Poor's by the makeup, those six-inch hooker heels and a `tramp stamp,'" Gross said in his monthly commentary posted on Pimco's Web site today.
Gross really lets them have it. A worthwhile read.
Everquest on or out : Expired
If it is on I am sure Cramer will pump it as "hot IPO"
anyhow today LEN with loss but if new home sales do not drop much expect the market to go up 150 points .
All this bear-effect on the MBS/CDO market:
How does this impact mortgage rates ?
any movment in ARM rates ?
a loan backed by a home mortgage is a repo.. i didn't know bear's hedge fund was buying securitized repos...it all makes sense to me now...
hedge-fund-implode-o-meter? anyone?
CR: U.S. Metropolitan Home Values Drop Most in Six Years (Update4) - Bloomberg.com
I thought that Everquest IPO is canceled
Did I understand correctly that Lennar went cash positive despite $200 million loss? It was a firesale then...
They may not be able to throw you out of high school, but you can be damn sure this is going to go on your permanent record...
Banks 'set to call in a swathe of loans' - Telegraph
more margin calls ?
Regarding Lennar, yes it was a fire sale, and yes they still have a smaller debt-to-cap ratio than peers (though it did, in fact, inch up since last quarter).
They still haven't taken significant impairment charges. And they did not give their balance sheet in the release (this may be SOP for them, I'd have to look at old releases to be sure).
In any case, they still haven't taken significant impairments. Their financial condition will continue to deteriorate as, like other highly leveraged builders, they try to play out this string a bit longer while housing bottom deepens.
I repeat myself? Very well, I repeat myself.
The mortgage landscape is about to change dramatically-
PIMCO - Investment Outlook-July 2007 "Looking for Contagion in All the Wrong Places"
Morse v Fredrick
First amendment by confiscating the "pro-drug" banner and suspending Frederick.
Substitute "pro-jesus" and they might have had a shot.
LII: Constitution
a loan backed by a home mortgage is a repo.. i didn't know bear's hedge fund was buying securitized repos
I bet Bear's hedge fund didn't know that either. In any case, I got dibs on CRO (collateralized repo obligation).
you can be damn sure this is going to go on your permanent record...
BONG HiTS 4 TANTA'S PERMANENT RECORD!
So Gross is calling a Fed easing in six months.
I can't see it. The inflation is coming from overseas (okay, not the "core" inflation, just the inflation that everybody has to worry about like food and gasoline), and if the Fed eases, a hell of a lot more of it is going to be coming from overseas.
Bernanke is clearly on record as an inflation fighter. He won't ease.
IMHO
btw, LEN avg home price down 7.5% in 3 month.
How about we give Gretchen, Bloomberg et. al. 48 hours to fix their mistakes and ensure they're accountable by creating a CCO for them(Collateralized Correction Obligation)
A reminder about April
"In April, sales of new single-family homes jumped by more than 16 percent to a seasonally adjusted annual rate of 981,000 units"
Now they are revised down to 930,000 annual pace in April......
and even from that sales are down.
The revision is the real story here (IMHO)
""In April, sales of new single-family homes jumped by more than 16 percent to a seasonally adjusted annual rate of 981,000 units"
Now they are revised down to 930,000 annual pace in April......"
Right on, Yal. That original April number got lots of coverage and the markets jumped big on the "bottom of the housing slump" theory. Now we find ... oops ... not so big a jump in April, after all.
Betcha the revision gets very little notice.
Well, sometimes the Bear gets You -- but sometimes You get the Bear (Warning this is not an incitement to illegal action either ... the rangers wrote this guy a $75 ticket when they came over after the fact)
"Treat bears with care, experts warn", by Bo Emerson, The Atlanta Journal-Constitution, June 25, 2007.
June 26 (Bloomberg) -- ....(Justice) Alito has emerged as the justice friendliest to the interests of corporations. He sided with the U.S. Chamber of Commerce, the nation's largest business lobby, in 13 of 14 cases this term, more often than any of his colleagues. He cast votes to limit punitive damages, ease regulation and restrict suits by investors, consumers and alleged victims of job bias.....The court under Chief Justice John Roberts ruled against the chamber in only two cases, both environmental fights....his support for business, breaking with the chief justice by backing restrictions on the....power of states to regulate national banks....barred states from regulating the mortgage-lending subsidiaries of federally chartered banks....Alito also went further.... in voting to raise the bar for shareholder lawsuits.... And in a second investor case, the justices threw out an antitrust suit accusing Goldman Sachs Group Inc., Merrill Lynch & Co. and other investment banks of rigging 900 initial public offerings....
A common thread in those rulings was an unwillingness to let cases go before a jury....The court is saying, ``we'll trust the executive branch, we'll trust Congress a little bit, but we really don't trust the American people to do what's right when they sit in the jury box,'' White said....
``The court overall is good for business,'' ...
(end quote)
Thak you again, Ralph Nader, for all your fine work in getting GWB elected!!!
The largest gains (if you can say that) in new homes sales were in the not started group. Anyone have a read on how this plays out?
I know TOL has been saying they are now taking non binding contracts.
Neal (10:35),
I recall from my short inglorious career in the Insurance Industry that businesses will move heaven and earth to avoid law and embrace equity, just so that they don't face juries (that's in Common Law jurisdictions -- your mileage may vary in Code Napoleon states).
Yup, Ralph Nader, great American!
He was paid. They owned him.
Hey, everybody! Remember the Blackstone IPO, trumpeted with great fanfare just a few days ago?
It's now trading below its opening price.
Yal asked: "All this bear-effect on the MBS/CDO market:
How does this impact mortgage rates ?
any movment in ARM rates ?"
Mortgage Indexes: CMT, Treasury Bill, MTA, COSI, COFI, LIBOR, CODI, CD, Prime Rate
S.
The consideration given by us in exchange for these assets was not negotiated at arms-length and may exceed the values that could be achieved upon the sale or other disposition of these assets to third parties, it said.
I think this note from the prospectus says it all. Btw, analyst Charles Peabody who was quoted in the article, has been at the game for many years and set up his own firm after basically being fired for being a straight shooter (and no, I am not in any way affiliated with him).
Bong hits 4 Roberts
arbogast said: "...Bernanke is clearly on record as an inflation fighter. He won't ease."
In the mid-cycle slowdown of the mid-90s the Fed eased when real U.S. GDP fell to current levels. Also, inflation simply isn't that high (current CPI-U 2.7%, long-term median 3.5%) so the Fed has room to ease without serious inflationary consequence.
JMO.
S.
More on what Gross said.
CDOs in `Hooker Heels' Fool Moody's, S&P, Gross Says (Update2) - Bloomberg.com
"AAA? You were wooed Mr. Moody's and Mr. Poor's by the makeup, those six-inch hooker heels and a `tramp stamp,'" Gross said in his monthly commentary posted on Pimco's Web site today.
Gross really lets them have it. A worthwhile read.
Tanta
BTW Carl Schmitt hated the rule of law.
winjr- "Hey, everybody! Remember the Blackstone IPO, trumpeted with great fanfare just a few days ago?"
If you recall, I said here over a week ago that Blackstone would fail because of Bear Stearns. That's why it failed.
And there's more coming.
Bong hits 4 Roberts
(cough, cough!!!)
(cough, cough, cough, cough!!!)
(cough, cough, cough, cough, cough, cough!!!)
Whoa!! Thanks alot, Captain Bringdown!!