I know, it is a up day on wall-st, FirstFed (FED) is even up 7.5% on the buyback (hugh volume today as well so I hope 10% of the buyback money already gone) but take a look at CFC:
I will say I have seen one or two semi-literates write "pare-off" instead of "pair-off" when referring to a certain practice of settling forward trades when you're short loans to deliver. But said semi-literates did not work for the WSJ.
This whole problem stems from having left open the credit door, leading to an uncontained horse that can no longer be sold for enough cash to pay the piper, which means that said piper is no longer playing the music which enabled people to dance, and now there aren't enough chairs for everybody to sit on.
These are the same people who refer to securitization as "chopping up loans," so it probably makes sense to them that you could just whittle away a bit of the face value and call that "tightening." Some people might think of that as "calling the loan," but they're just those anal-compulsives whose webs fail to vibrate.
Tanta or other, people say CFC became a thrift and it's now in more favorable position. Could you please explain the differences between a bank, thrift, REIT (and what else?) If I have a checking account (as I do with WM) do I care it's not a bank? Does it hurt AHM that it's a REIT?
" I know, it is a up day on wall-st, FirstFed (FED) is even up 7.5% on the buyback (hugh volume today as well so I hope 10% of the buyback money already gone)"
FED will run out of ammunition by the beginning of next week.
the WSJ clearly doesn't have bacon dreamz's skill for metaphors like salmon trying to mate w/ investment grade bonds. Tanta's on the right track with the fruit salad.
Doesn't real estate "only go up!" and the price not matter because "you can always refinance and real estate only goes up!" Okay, I jest, but I hope that all the goobers that believed that nonsense are waking up to reality.
Based upon this strange article, are the tentacles still vibrating through the tracks that may derail the train that is stalking victims in the night?
Re the Moody's warning about Alt-A, there were actually two reports, the first saying they increased loss expectations on Alt-A 10-100% and the second on option ARMs:
"The Option ARM methodology revisions are in response to the current weaker housing and mortgage markets. In addition, the updated methodology refines our credit risk analysis of different Option ARM products. The updated Option ARM methodology is expected to increase our loss estimates by up to 20% and Aaa loss estimates by 10% to 40%."
From the wording, the increase is additive for Alt-A option ARMs. DSL and FED (which is up 5% today because they announced that they've been buying shares) sold lots of SISA (ergo Alt-A) option ARMs.
The uptick today is a total head-fake. It turns out they went into the market and bought lots of shares, particularly in the last week, while the share price was falling dramatically. Real effective buy-back. If I didn't already have 32 put contracts on FED I would be buying more... I may anyways...
Lenders Tighten Standards, Pare Loans in the Face of Debt
That has recognizable English syntax--if you're not fussy--but I must say that if I have ever pared a loan in the face of debt I didn't know I was doing it at the time. - Tanta
There wasn't much choice. Now is NOT the time to prune hedges (in the face of debt or otherwise). It is a sin.
Avoid these summer gardening sins Don't prune hedges right now. In fact, don't prune the entire months of July, August or September.
Prune in May then walk away.
...that new growth won't have a chance to develop woody tissue before winter sets in, so it probably will die. Hedges need a chance to harden off before the onset of freezing temperatures.
I hope I didn't overstep my bounds. I don't know about the rest of you, but I'm blushing.
Lurker,
I found this definition of a thrift, hope it helps:
A Thrift is a financial institution that takes in deposits and makes loans. Like commercial banks, thrift deposits are insured by the FDIC. Unlike banks, thrifts tend to make only residential and commercial mortgage loans.
from http://rbcoweb.ryanbeck.com/rbeck/optionscan/thriftconversion.pdf
Yesterday bloggers said the yen was down, so the trade was on (borrow yen, buy US stocks). My logic - which I have screwed up somehow - would say thats backwards, because a cheaper yen would be more likely to go back up.
I think it was the borrower's who were getting pared.........
As for the detectives, Inspector Clouseau is on the case!
Maybe they meant they piered a loan in the face of doubt, and were misquoted.
RIP WSJ
Maybe they meant they pared an aspidistra in the face of God, but the peyote wore off before press time.
hey hey hey lets not endanger that 'G' rating!
I guess the WSJ will be a high priced version of the NY Post. You can read the WSJ for its entertainment value once Murdoch takes control.
OK English lesson please : what is pared a loan ?
I know, it is a up day on wall-st, FirstFed (FED) is even up 7.5% on the buyback (hugh volume today as well so I hope 10% of the buyback money already gone) but take a look at CFC:
slowly setting into the mead 20s....
who would have thought it would occur so fast.
Yal, no native English speaker except some goofball at the WSJ copy desk knows what is "pared a loan."
We're all just as confused as you are.
You have nothing to fear, but the loans themselves.
Pared a loan, reduced it.
I will say I have seen one or two semi-literates write "pare-off" instead of "pair-off" when referring to a certain practice of settling forward trades when you're short loans to deliver. But said semi-literates did not work for the WSJ.
This whole problem stems from having left open the credit door, leading to an uncontained horse that can no longer be sold for enough cash to pay the piper, which means that said piper is no longer playing the music which enabled people to dance, and now there aren't enough chairs for everybody to sit on.
A common problem in the last few years, actually.
These are the same people who refer to securitization as "chopping up loans," so it probably makes sense to them that you could just whittle away a bit of the face value and call that "tightening." Some people might think of that as "calling the loan," but they're just those anal-compulsives whose webs fail to vibrate.
that's the way i read it- pair
yield whore and crack(yld) dealer
quite a pair
re-hab won't be the same
Look at that saw tooth pattern in the indices.
The money that is being made!
But the yen money doesn't want to go long. That is obvious.
On the other hand, they don't have to.
I think I hear a truly thunderous fart coming through the silk right now.
I would say that this pattern does not presage well for the economy. Or, finally, for the stock market.
Stock Market and Economy broke up a long time ago.
"Recent sessions have seen the major indices in New York swing back and forth between positive and negative, and in short time spans, as investors tried to get a handle on their worries about the credit market" - Robert Holmes at The Street, "Stocks Calm for a Change"
that's Robert "Sherlock" Holmes, actually. He is just being modest.
Mr. Lucas clarifies Mr. Moss: "To say that the flow-on effects that we've seen in financial markets worldwide, like equity markets are down, I don't think anyone could've assumed from Alan's statement that we were saying equity prices may not see flow-on effects from the liquidity issues that are going on in financial markets", from "Macquarie calls for calm after market meltdown"
John M. - ah yes
Pare Loans = the loan went pear-shaped
So if you have a pair of pear-shaped loans that you pare in the face of debt, is this a still-life or a fruit salad?
Sounds like the end result is a lot of material for the compost pile.
C'est de la purée.
Tanta or other, people say CFC became a thrift and it's now in more favorable position. Could you please explain the differences between a bank, thrift, REIT (and what else?) If I have a checking account (as I do with WM) do I care it's not a bank? Does it hurt AHM that it's a REIT?
TIA
" I know, it is a up day on wall-st, FirstFed (FED) is even up 7.5% on the buyback (hugh volume today as well so I hope 10% of the buyback money already gone)"
FED will run out of ammunition by the beginning of next week.
the WSJ clearly doesn't have bacon dreamz's skill for metaphors like salmon trying to mate w/ investment grade bonds. Tanta's on the right track with the fruit salad.
I quit reading WSJ years ago when it stopped being a newspaper. But now, I wouldn't even line the birdcage with it. Sad, sad, sad.
i haven't been able to find any FED shares to short for months and it hasn't changed now.
Wait, I am confused:
Re the Moody's warning about Alt-A, there were actually two reports, the first saying they increased loss expectations on Alt-A 10-100% and the second on option ARMs:
"The Option ARM methodology revisions are in response to the current weaker housing and mortgage markets. In addition, the updated methodology refines our credit risk analysis of different Option ARM products. The updated Option ARM methodology is expected to increase our loss estimates by up to 20% and Aaa loss estimates by 10% to 40%."
From the wording, the increase is additive for Alt-A option ARMs. DSL and FED (which is up 5% today because they announced that they've been buying shares) sold lots of SISA (ergo Alt-A) option ARMs.
The uptick today is a total head-fake. It turns out they went into the market and bought lots of shares, particularly in the last week, while the share price was falling dramatically. Real effective buy-back. If I didn't already have 32 put contracts on FED I would be buying more... I may anyways...
Lenders Tighten Standards, Pare Loans in the Face of Debt
That has recognizable English syntax--if you're not fussy--but I must say that if I have ever pared a loan in the face of debt I didn't know I was doing it at the time. - Tanta
There wasn't much choice. Now is NOT the time to prune hedges (in the face of debt or otherwise). It is a sin.
Avoid these summer gardening sins
Don't prune hedges right now. In fact, don't prune the entire months of July, August or September.
Prune in May then walk away.
...that new growth won't have a chance to develop woody tissue before winter sets in, so it probably will die. Hedges need a chance to harden off before the onset of freezing temperatures.
I hope I didn't overstep my bounds. I don't know about the rest of you, but I'm blushing.
Lurker,
I found this definition of a thrift, hope it helps:
A Thrift is a financial institution that takes in deposits and makes loans. Like commercial banks, thrift deposits are insured by the FDIC. Unlike banks, thrifts tend to make only residential and commercial mortgage loans.
from http://rbcoweb.ryanbeck.com/rbeck/optionscan/thriftconversion.pdf
Stupid question re Yen carry trade:
Yesterday bloggers said the yen was down, so the trade was on (borrow yen, buy US stocks). My logic - which I have screwed up somehow - would say thats backwards, because a cheaper yen would be more likely to go back up.