Please make sure you save this blog....Someday Historians are going to look back at this stuff and possibly get an idea of what really has happened the last couple of years in America......
City of London fears 2nd bank in trouble
The City was swept by rumours yesterday that another British bank was in trouble after Northern Rock indicated it was not the only bank borrowing from the Bank of England's rescue fund.
Northern Rock has borrowed only £18bn of the £23bn lent by the Bank of England from its emergency loan fund, leading to speculation that other British banks need £5bn of extra funds to cope with the global credit crunch.
The world's biggest game of Cluedo? is going on in Canary Wharf as I write.
Is it Billy Barclay in the study with a pipe, or is it Roger Royal Bank Of Scotland in the conservatory with a pistol?
Please make sure you save this blog....Someday Historians are going to look back at this stuff and possibly get an idea of what really has happened the last couple of years in America......
Take care .....
Hoosier_Gold_Bug | 11.03.07 - 12:39 am | #
CR- he beat me to it. I've been hoping you've made a physical copy of the blog and comments,...fodder for another John Brooks, Michael Lewis, or George Goodman. It's beautiful the way you and Tanta have attracted such great (and entertaining) followers. I'm guessing Tanta is also responsible for keeping the blog a civil place to be. Thanks again.
Evidently, many investors have been lobbying for the replacement of the the Citi CEO Prince. When his resignation was announced, C when up almost 4% in after hours yesterday afternoon. Let's see--the situation is worse than expected, the CEO is out and maybe some other top choices are turning down the job. Sounds like an "all is clear bottom signal??" Will this help other stocks in the financial sector recover? I think that I will pass on cashing out my financial puts and take a longer perspective--waiting as long as a week to see if there is more fallout.
Countrywide Financial Corp., in August told her she would first need to fall two months behind on payments. So last month, she stopped paying. "I don't have any option but to stop paying," she says.
Countrywide disputes Ms. Cooper's version of events, saying in its files there isn't any reference to telling her that she needs to be two months behind. "We have been informed that Ms. Cooper is seeking to sell the home," a Countrywide spokesman said. "We continue to pursue this course as a possible satisfactory solution."
..
Elizabeth Schomburg, senior vice president of the Family Credit Counseling Service in Chicago, says about 10% to 20% of some 1,000 families who sought help from the nonprofit agency last month were current on their mortgages and thus considered by lenders as "ineligible" for loan modification.
Some interesting figures in this article. Mortgage refinancings were 66% of the market in 2003, 53% in 2004, and roughly 50% in both 2005 and 2006. So any time someone talks about bailing out upside down homeowners, realize that they're likely talking about people who were doing cash out refinancing of existing mortgages. Just the people I want my tax money helping.
The other figures on revenue and costs for mortgage originators are interesting as they relate to Countrywide, which, as you'll recall, forecast turning a profit in the fourth quarter and for the 2007 fiscal year. Most interesting thing to me is the profit in lending comes from selling into the secondary market. Loans servicing is actually a loss leader; origination loses money; and warehousing (the spread between cost of funds and mortgage rate) is going to be extremely narrow now that Countrywide is going to fund them with above market payments for deposit and the fact that they are going to go for plain vanilla agency loans.
That leaves the profit from "net marketing income", selling the loan it to the secondary market. That averaged $2180 per loan last year. That, of course was for option ARMS, 2/28 and all the other "affordability" loans that sell for a higher price than Freddie Mac or Fannie Mae loans. What do you want to bet that the profit per loan goes down in the future.
As far as I can see, revenue and profitability on loan origination, servicing and packaging for sale into the secondary market are all going to be down. So how will Angelo do it? The only way I see is to not recognize the losses sitting on their books. Much like the Bloomberg dissection of WaMu recently, I expect someone to do the same to Countrywide's balance sheet, once they make their 10-Q filing with the SEC.
ISLAMABAD, Pakistan - President Gen. Pervez Musharraf declared a state of emergency in Pakistan on Saturday, state TV said, ahead of a crucial Supreme Court decision on whether to overturn his recent election win.
Several analysts believe Britain's banks face a major problem. Sandy Chen at Panmure Gordon said the problem faced by British banks was whether "the liquidity crisis is deepening into an insolvency crisis". "There is a clear path, we think, that leads from the current turmoil in credit markets to major trading losses for the UK banks with US mortgage and global markets exposure," Mr Chen wrote in a note to clients yesterday. "Patterns seen in the US could be replicated in the UK".
He said if it does prove to be the case that the problem is moving from a liquidity to a solvency crisis, "a wave of credit events could trigger payouts on credit derivatives that could dwarf the losses on sub-prime, and tightened risk models could prolong the crisis well into 2008".
Ya know what really chaps my A$$ is how, with all the nonsense bullshit SarbOx procedures put in place (that probably did nothing but force toothless tiger regulators to focus on the magician's other hand), that so much insane risk got placed off balance sheets to begin with. Now that it's far too late to do anything constructive regulators are beginning to investigate. It should have been ILLEGAL - PERIOD. There is no reason why these schemes should have even been possible post Enron, WCOM, Tyco...
The regulators, FDIC, OTS, OCC, SEC... SERIOUSLY - wtf are they good for????
--
For some time now, the U.S. economy has been hopelessly finance-driven, and the greater and more protracted the Credit excesses the greater the "transformation" of the economic structure. And it is the underlying real economy that today cannot "pay its bills" and is therefore hooked on ever increasing Credit inflation. This should at this point be recognized as the Road to Ruin. Contemporary finance and its operators should be held accountable.
I am starting to feel like that is a good description of this last two years...drop after drop of financial napalm on the heads of Wall Street and they still talk of Victory.
Maybe they should be talking about how to survive.
But then, the CEO of any big firm on Wall Street should be worrying about Board meetings like this one: YouTube -
Terminate the Colonel's command.
Terminate with extreme prejudice.
Time to hit that big reset button on the economy and start a reboot, that time will be soon.
Meanwhile, inflation has started to rage and interest rates are still paltry....
First to troll.
This board must be losing popularity.
Thanks CR. On that note, maybe it's time to turn in...
Please make sure you save this blog....Someday Historians are going to look back at this stuff and possibly get an idea of what really has happened the last couple of years in America......
Take care .....
If these are last couple of years of America, historians may have to dig underground to find anything.
And those historians may not be human either
.
I have a round little bubble butt and I hear that's good.
Nice! CR with a Toby Keith reference. Who'da thunk it?
Cheers,
prat
Angelo said Americans are NOT stupid.
YouTube
- Americans are NOT stupid - WITH SUBTITLES
City of London fears 2nd bank in trouble
The City was swept by rumours yesterday that another British bank was in trouble after Northern Rock indicated it was not the only bank borrowing from the Bank of England's rescue fund.
Northern Rock has borrowed only £18bn of the £23bn lent by the Bank of England from its emergency loan fund, leading to speculation that other British banks need £5bn of extra funds to cope with the global credit crunch.
The world's biggest game of Cluedo? is going on in Canary Wharf as I write.
Is it Billy Barclay in the study with a pipe, or is it Roger Royal Bank Of Scotland in the conservatory with a pistol?
this man should be in jail
I think I'll stick with Sublime.
Please make sure you save this blog....Someday Historians are going to look back at this stuff and possibly get an idea of what really has happened the last couple of years in America......
Take care .....
Hoosier_Gold_Bug | 11.03.07 - 12:39 am | #
CR- he beat me to it. I've been hoping you've made a physical copy of the blog and comments,...fodder for another John Brooks, Michael Lewis, or George Goodman. It's beautiful the way you and Tanta have attracted such great (and entertaining) followers. I'm guessing Tanta is also responsible for keeping the blog a civil place to be. Thanks again.
They are all crooks, the lot of them. Just very intelligent crooks, that know how to play the system and get away with it.
"Were sorry this video is no longer available"
Hm, now I REALLY wonder what it was and why it was removed.....
(still think this is a great blog BTW)
Try refreshing the page, if you're still around. YouTube embeds decay, but are refreshable.
Getting what you wish for?
Evidently, many investors have been lobbying for the replacement of the the Citi CEO Prince. When his resignation was announced, C when up almost 4% in after hours yesterday afternoon. Let's see--the situation is worse than expected, the CEO is out and maybe some other top choices are turning down the job. Sounds like an "all is clear bottom signal??" Will this help other stocks in the financial sector recover? I think that I will pass on cashing out my financial puts and take a longer perspective--waiting as long as a week to see if there is more fallout.
"You don't want to give money away"
Double Squeeze for Homes - WSJ.com
Countrywide Financial Corp., in August told her she would first need to fall two months behind on payments. So last month, she stopped paying. "I don't have any option but to stop paying," she says.
Countrywide disputes Ms. Cooper's version of events, saying in its files there isn't any reference to telling her that she needs to be two months behind. "We have been informed that Ms. Cooper is seeking to sell the home," a Countrywide spokesman said. "We continue to pursue this course as a possible satisfactory solution."
..
Elizabeth Schomburg, senior vice president of the Family Credit Counseling Service in Chicago, says about 10% to 20% of some 1,000 families who sought help from the nonprofit agency last month were current on their mortgages and thus considered by lenders as "ineligible" for loan modification.
Realty Times: Profits Fall for Mortgage Banking Companies in 2006
Some interesting figures in this article. Mortgage refinancings were 66% of the market in 2003, 53% in 2004, and roughly 50% in both 2005 and 2006. So any time someone talks about bailing out upside down homeowners, realize that they're likely talking about people who were doing cash out refinancing of existing mortgages. Just the people I want my tax money helping.
The other figures on revenue and costs for mortgage originators are interesting as they relate to Countrywide, which, as you'll recall, forecast turning a profit in the fourth quarter and for the 2007 fiscal year. Most interesting thing to me is the profit in lending comes from selling into the secondary market. Loans servicing is actually a loss leader; origination loses money; and warehousing (the spread between cost of funds and mortgage rate) is going to be extremely narrow now that Countrywide is going to fund them with above market payments for deposit and the fact that they are going to go for plain vanilla agency loans.
That leaves the profit from "net marketing income", selling the loan it to the secondary market. That averaged $2180 per loan last year. That, of course was for option ARMS, 2/28 and all the other "affordability" loans that sell for a higher price than Freddie Mac or Fannie Mae loans. What do you want to bet that the profit per loan goes down in the future.
As far as I can see, revenue and profitability on loan origination, servicing and packaging for sale into the secondary market are all going to be down. So how will Angelo do it? The only way I see is to not recognize the losses sitting on their books. Much like the Bloomberg dissection of WaMu recently, I expect someone to do the same to Countrywide's balance sheet, once they make their 10-Q filing with the SEC.
C wave
According to Elliott Wave Principle C wave declines are "devastating in their destruction."
From Prince Charles to Chuck* Prince
*verb transitive
Best regards,
new house washington dc,
new house ventura california,
the house new houston tx,
OT - file under interesting times...
Pakistan's Musharraf declares emergency
ISLAMABAD, Pakistan - President Gen. Pervez Musharraf declared a state of emergency in Pakistan on Saturday, state TV said, ahead of a crucial Supreme Court decision on whether to overturn his recent election win.
[snip]
from the UK telegraph...
Several analysts believe Britain's banks face a major problem. Sandy Chen at Panmure Gordon said the problem faced by British banks was whether "the liquidity crisis is deepening into an insolvency crisis". "There is a clear path, we think, that leads from the current turmoil in credit markets to major trading losses for the UK banks with US mortgage and global markets exposure," Mr Chen wrote in a note to clients yesterday. "Patterns seen in the US could be replicated in the UK".
He said if it does prove to be the case that the problem is moving from a liquidity to a solvency crisis, "a wave of credit events could trigger payouts on credit derivatives that could dwarf the losses on sub-prime, and tightened risk models could prolong the crisis well into 2008".
Barclays rumours knock shares - Telegraph
Ya know what really chaps my A$$ is how, with all the nonsense bullshit SarbOx procedures put in place (that probably did nothing but force toothless tiger regulators to focus on the magician's other hand), that so much insane risk got placed off balance sheets to begin with. Now that it's far too late to do anything constructive regulators are beginning to investigate. It should have been ILLEGAL - PERIOD. There is no reason why these schemes should have even been possible post Enron, WCOM, Tyco...
The regulators, FDIC, OTS, OCC, SEC... SERIOUSLY - wtf are they good for????
Fitch Downgrades Fremont General Corp IDR to 'CC' Rtg Outlook Revised to Negative
News
Telegraph Blogs
tags.. bear poo
--
For some time now, the U.S. economy has been hopelessly finance-driven, and the greater and more protracted the Credit excesses the greater the "transformation" of the economic structure. And it is the underlying real economy that today cannot "pay its bills" and is therefore hooked on ever increasing Credit inflation. This should at this point be recognized as the Road to Ruin. Contemporary finance and its operators should be held accountable.
November 02, 2007
Road to Ruin
by Doug Noland
Safe Haven | Road to Ruin
I know exactly where this road leads to. The only question is when and even that would be answered ssoner than most think.
Jas
Hey, Daddy, I want an Oompa Loompa Loan. I want you to get me an Oompa Loompa Loan right away.
All right, Veruca, all right. I'll get you one before the day is out.
I want an Oompa Loompa Loan now!
YouTube -
Someday this war's gonna end...
I am starting to feel like that is a good description of this last two years...drop after drop of financial napalm on the heads of Wall Street and they still talk of Victory.
Maybe they should be talking about how to survive.
But then, the CEO of any big firm on Wall Street should be worrying about Board meetings like this one:
YouTube -
Terminate the Colonel's command.
Terminate with extreme prejudice.
Time to hit that big reset button on the economy and start a reboot, that time will be soon.
Meanwhile, inflation has started to rage and interest rates are still paltry....
The war will end someday, they all do...
So, is anyone still confused as to why the Fed rate was cut this week?
Like I said before--the Fed was more scared of this than of $100/barrel oil.
The question is, will the cut scare away the bogeyman, or will the bogeman still come and there will also be a broken consumer?
A multiple choice quiz about the rumbling sound coming from the east coast of the US. Is it:
a) The sound of printing presses?
b) The sound of helicopters warming up?
c) Jets warming up to fly to the bagmen to the Caribbean banking centers?
d) The sound of trucks tranferring toilet paper from the investment bankers to For Knox?
e) Warming up the "wag the dog" geopolitical sound-stage?
I suppose this is going to skewer O-Joes theory of the best time to invest is when Uranus is rising (or whatever that theory was)...
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