I think this whole greasy hair thing is getting too wild and if we allow FDIC to wage to many battles, then we will end up looking like The Nazis post WW ll.. do we have to go through this, and then in the process, ignore constitutional rights?
I'm shocked by these accusations. Shocked, I tell you. Intimidating appraisers. Stunning. Who could have ever believed such unsavory behavior was occurring? Not me. Not me.
A petition with 8,000 signatures asking for federal intervention in 2005 and we're just now hearing about it? Any way of finding out who all got copies of the petition?
From my copy of "Holding Someone Accountable for Dummies":
"There's no such thing as private embarrassment. If you want results, make your beef public. Document the facts - not the emotions - and calmly send them to everybody - the press, the consumer groups, the watchdogs, the big dogs, the little dogs; in short, everyone you can think of. And list all their names at the bottom of your cover letter so that EVERYBODY KNOWS they all know. Do this whether you're fighting City Hall or your fighting your dry cleaner. Public embarrassment. That's how you keep a problem from being swept under a rug."
Anonymous writes:
why is it that BR always has "the inside scoop" after it means nothing??
His post, and more importantly his example, would have been far more prescient about a month ago.
Well, the guy (Vernon Martin) wasn't going to make all of the nasty details public until he didn't have worry about IndyMac's lawyers coming after him. Can't say that I blame him. We probably won't hear the really juicy stuff on WaMu until after they go under, as well.
This post smells of a morality play. Committing fraud and being greedy was just the pragmatic thing to do. Those ideologues who refuse to reason with management will be fired!
Hello, I would like to join your excellent blog. I believe I can be of value to your organization by helping with information, organization, inducing unnecessary bank runs, obtaining automatic weapons and paramilitary uniforms and terrorist literature or other resources required to be a blogger. Please feel free to contact me and request equipment or detailed operational planning assistance at radicalblogger1@doj.gov. I am truly united with the rest of the radical extremist community in sincere admiration of your struggle. Solid!
John Dough writes:
Hello, I would like to join your excellent blog. I believe I can be of value to your organization by helping with ....
Sir,
I have at your request placed the sum of three trillion one hundred and eighty billion US dollars in the good good faith account at the US Treasury Dept as you requested. Since that time I have not heard from you nor has my pony arrived. When may I expect delivery?
"whose fortune was seized by the FBI, and who is in jail"
The goods were sold to taxpayers for cash now sitting in a few offshore accounts and nobody is going to jail; but, the taxpayers who will be on slaving to payoff the debt.
BTW - "malfeasance of regulatory supervision"...for financials is nothing like the regulation of insurance companies: Example, in British Columbia, Canada, licensed insurance adjusters can choose money over human life if it benefits their client, an Insurer - and this is perfectly fine according to the regulators who dish out licenses to adjust insurance claims.
google Mr. Martin and you find the original in the appraisal blogs...about a month old...days before the FBI investigation was announced.
Of course, bet a $1 there was a terse conversation between the Senator and the CEO a day before the "concerns about Indymac" letter was accidentally released.
A petition with 8,000 signatures asking for federal intervention in 2005 and we're just now hearing about it?
Well, some of us have known about it for a couple of years. Appraisers, even as a group, don't have a helluva lot of power--unless you count the 454 cubic inch engines in their early model LTDs. Now, that was some power.
FWIW, here is an email from a realtor here in Canada:
What's happening in Real Estate?
June records still show a healthy market. Sales were down in the GTA (toronto) 18% from last June ~ but that was the hottest June ever. Average price at $395,866 is up 4% from last June. Number of properties for sale or lease is up 22% from June '07
Where is the Market going?
Expect to see a more balanced market after 11 years of steady growth of between 4 and 8% annually. There will be more houses on the market and a slower overall prices increase. We may also see some depreciation.
What's recommended?
It's a great time to BUY, whether first-time or investment properties >> more options and less competition. It's a great time to UPSIZE >> you will benefit more by selling your less expensive property and buying higher... but be sure to sell first ~ it may take more time than previously.
How Credible is Real Estate 'News'? Not very. Reporters can be lazy and not do the work. Think for yourself.
DETROIT (Reuters) - Chrysler LLC's financial arm on Friday said it would stop offering vehicle leases to U.S. consumers, a sharp break in strategy in response to plunging resale prices for gas-guzzling trucks and tighter credit
Gee, I thought the whole housing Bubble was legit and that everyone could afford to buy houses at 5x, 8x, and 10x their incomes! Hey, why even document income - we trust yah, right?
i think it was an innoncent mistake of mine, based on your wording that you still believed nasdaq qouble printed the buy and sell transaction to the tape, known as double printing.
89% of the time, i agree with stuff you say... and then there's that 11% where you go off on a tangent like you have one to many bong rips
Ive been lurking on this site reading and learning for many months, and this post has led me to finally comment.
In 2005, I was building a house with the use of a construction loan, the company that I went through for this had their 'preferred' lender that they almost forced me to use, to the point of harassing visits to the place I was living threatening to pull the loan if I didnt use their lender and convert the construction loan immediately.
At the time, I was still in the process of learning all the fine details of how the different types of loans worked, so I wasnt exactly as well prepared as I should be. But what they were trying to offer me was so far into the territory of fraud, that even I noticed it.
From my own appraisals that I had done independently, I was expecting a fixed loan of around 185K after I rolled the construction costs into a 'regular' mortgage. However, THEIR appraisal was for over 230K, and the loan they wanted to put me in was an 3-yr ARM loan. The 'bait' was that they were trying to have me take the cash difference at closing of over 40K. Now Ive had my bad luck with Credit way back in my teens, and I know theres no 'free money' and that somehow or someway, Id be paying back that 40K that was cashed out.
luckily, I didnt take the bait and get sucked into that great offer. At the time, I couldnt help but think how often that practice was occuring. And as time has gone on, I came to realize it happened VERY often.
In the end, I rushed to get the loan I have now, wich is a fixed 30-yr, to avoid the contant threats by the construction loan company. I learned through a trial by fire so to speak, exactly how messed up and unsustainable the whole mess had become, and it was shortly after that time that I opened my eyes to the possibility that there could be a very large problem that results from these kinds of practices with something as important as someones home.
Thanks for reading this one guys experience, I can only hope that the people who took the easy money were simply investors, and this practice didnt affect too many people who actually used their house to live in, instead of to make a quick buck off of.
11% from bong rips, you sure that does not have a plus or minus 10% factor like new home stats...He might not be hitting the bong at all or he could be pilfering CSC's stash at 21%
"i think it was an innoncent mistake of mine, based on your wording that you still believed nasdaq qouble printed the buy and sell transaction to the tape, known as double printing."
So you can admit when you are wrong?? or is that some underhanded sleight back at me??
I bet...If you were not in such a rush to "correct" me.....you might catch it when I do screw up. We all do at some point.... although it seems like you wait for me to do so.
as far as the above comment....may be someone else agrees with me??? Nah that couldn't happen as I "know nothing".
Thanks, RevolutionNotBeTelevised, for the real stuff. I fear that your hopes of retail borrowers not getting soaked are, not going on. You're smarter than most.
For any of you waiting anxiously for a bank receivership announcement, AZ doesn't like DST, so it'll probably be after 8P ET before any formal announcement hits the wires...
o sleight, MS. this all goes back to your recinded heloc. one of your tangent days. i really thought it was you with the ban barry comment, and thought it was hilarious , and would have been apropos
Ask BR about it I'm sure he'll have lots to say including attributing statements to me I've not made. But I see how that's pretty effective when you delete the real ones from the blog.
My mother has an IndyMac mortgage and when she was refinancing, the appraiser supposedly just drove past the house to do the appraisal. That's what she was told, at least, she never saw anyone. I'm no expert, but that always seemed sketchy to me.
My weekly OT post of up-to-date PE Ratios of the major indices, from the WSJ$ Market Data Center:
Nasdaq = 27.43
S&P 500 = 22.95
Russell 2000 = 2470 (must be a typo)
These are calculated using Trailing 12 Months earnings. If you prefer to believe the fantasy-based forward earnings estimates, you're welcome to drink that Kookaid.
The Fed, Fannie, Freddie, etc, didn't have anything to do with this mess. It was Joe 6Pack - the realtor, John GED - the mortgage broker, and Jerry 7-Eleven - the appraiser. And because of their lack of fiduciary relationships (see Tanta's posts for more info.) we are now in this horrible situation.
P.S. The Global Warming also played an important role; Joe, John, and Jerry got very hot.
Many writing the multitude of types of market insurance incorporate "dynamic hedging" strategies. This means that few hold little in the way of actual "reserves" to pay in the event of major losses. Instead, they rely on "shorting" various securities that, in a declining market, will provide the necessary cash-flow to satisfy any insurance obligations. This all worked wonderfully in theory, and the basic premise of modern day risk hedging capabilities was supported by the nature of highly liquid boom-time financial markets. But "torrential rains" have a way of rapidly and dramatically altering marketplace liquidity. The reality is that entire markets cannot insure themselves again declines. Any attempt by a large swath of the marketplace to hedge exposure will be problematic. Selling will either immediately overwhelm the market or the "put options" accumulated as protection will create acute market vulnerability to self-reinforcing selling pressure and market dislocation.
Today, there is little liquidity in the securitization or corporate bond markets. So, the multi-Trillions of strategies relying on shorting securities for hedging and speculating purposes have gravitated to the relative liquidity of U.S. equities. And, when it comes to hedging against or seeking profits from heightened systemic risk, one can these days see rather clearly how incredible selling pressure can come down hard on the 19 largest U.S. financial institutions. And when one considers the scope of derivative strategies that incorporate "delta hedging" trading dynamics - where the amount of selling/shorting increases as the market declines (systemic risk increases) - one recognizes the possibility of a marketplace dislocation along the lines - but significantly more systemic - than the "portfolio insurance" fiasco that fueled the 1987 stock market crash.
Sorry that was an (appropriate) inadvertent typo...Kookaid should have been Koolaid.
I like Kookaid better.
Who knows what the TTM P/E of the Russell 2000 really is?
Earnings of small-caps are plummeting, and the number that have negative earnings is growing. As the total earnings of all 2,000 companies gets closer to zero, the P/E can fluctuate quite a lot, even from week to week. Eventually, as earnings go below zero, the P/E becomes infinite.
Yes, negative earnings always bounce back. But this time, I don't think they'll bounce back very fast for small-caps. In part because the debt burdens and financing costs will be great for a long time to come.
The NASD briefly went to infinite P/E at one point in 2001. But remember, the NASD has a lot of earnings megamonsters like Microsoft.
When I heard this week that the Russell 2000 got a lift from all its airline components this week, I just laughed. Who would have thought the biggest airlines in the U.S. would all be small-cap?
"We haven't broken the relationship between the dollar and the commodities, but we have broken the speculative bubble," says Emily Sanders, CEO of Atlanta-based Sanders Financial Management. "The speculators are jumping for the exits at the moment so they don't get hit by a freight train. But that doesn't mean it can't turn on a dime." MSNBC: The Dollar Stages a Comeback the Hard Way
What fraud? According to Congress its our national right that housing prices never decline. Therefore housing appraisals must always go up, up, and away!
GE Funding Capital Market Services on July 21 received a "Wells notice" indicating the SEC staff is considering recommending action against the company over the way certain former employees bid for municipal securities, the company said.
It said it is one of several companies to have received Wells notices in connection with the matter.
A notice in every pot. As for fraud the whole system is based on fraud with the hook being that a piece of paper in a fractional reserve banking system has some magic value other then being good for wiping ones butt with.
The economy could have gone into a serious inflationary spiral, or it could have gone into a serous depression. But it won't. TPTB have opted for a giant bailout and a 12-15 year recession (ie Japan). At least now we know the probable out-come of this disaster.
US Treasury to boost 10-year note sales as fiscal deficit swells
Driving the need to expand borrowing is a deteriorating budget situation, driven by falling corporate income taxes and continued high spending for the wars in Iraq and Afghanistan, as well as an economic stimulus program to support the economy.
A housing rescue package due to be approved by the Senate on Saturday adds an additional $4 billion in grants to communities to repair homes, and if housing giants Fannie Mae and Freddie Mac need government bailouts, the price could be around $25 billion, according to congressional researchers.
Since late April, the government has sent out $91.8 billion worth of tax rebate checks to 112.4 million American families and individuals, which has helped to prop up consumer spending. The bulk of the checks have gone out, but small batches will continue to be sent as households file late tax returns.
The White House is expected to release its latest budget deficit estimate on Monday for the 2008 fiscal year ended September 30, and analysts expect it to climb into record territory from the $410 billion estimated in February.
This compares with $163 billion in fiscal 2007 and a record $413 billion in 2004.
Through the first nine months of fiscal 2008, the government's deficit was $268.7 billion, compared with a $121 billion deficit for the same period a year earlier.
Merrill Lynch analysts Drew Matus and David Rosenberg estimate that the fiscal 2009 budget deficit will top $500 billion, which presents a "daunting" task for the Treasury of arranging $1 trillion in financing next year. It will have to turn to the 3-year note to close the funding gap
More supply, less demand, Uh Oh, sounds like the housing market and this is all they have planed not including all the other crap that is more then likely to start blowing up.
I wonder when Russell 2000 stock prices will drop to bring that PE ratio back to sanity? I'm astonished how it stays aloft despite the ongoing credit crisis!
How would you even know?? Most of my posts were gone within a scant few minutes of posting. I also thought it was cute that he accused me of calling him a "dick" for agreeing with him-I didn't agree with him. I even offered to apologize to him (and the rest of the board) if he could produce the post in which it allegedly occurred. But I'm sure you never saw that one either.......
Makes me wonder about his claim regarding kicking someone else off for being anti-semitic. I was active on that day and NEVER saw anything like that...but I did see what I posted even if only for a minute or two.
If providing real backup in order to refute an obviously poorly researched statement is being "obnoxious" then color me guilty.
I work on small cap stocks for a living. The Russell 2000 rebalanced at the end of June. A lot of companies with great earnings became large caps. Instead companies like Ambac and MBIA replaced them (because the index is based on market cap). For each Ambac that is now in the index that has lost billions, the earnings of several companies who were always small cap and do make money gets canceled out.
It doesn't matter how much the stock prices drop, earnings are basically zero. The E in the P/E is all that matters with such low earnings. A common practice on Wall St. is to not include negative earnings or use forward P/Es (which are based on predicted operating or core earnings, and are therefor always positive).
My appraiser did a little more than that when we refinanced in 2002(not IndyMac), but I was surprised he didn't come in to check if all the utilities worked, that we hadn't knocked a hole in one of the walls, etc.
Rancidification is the decomposition of fats, oils and other lipids by hydrolysis or oxidation, or both. Hydrolysis will split fatty acid chains away from the glycerol backbone in glycerides. These free fatty acids can then undergo further auto-oxidation. Oxidation primarily occurs with unsaturated fats by a free radical-mediated process. These chemical processes can generate highly reactive molecules in rancid foods and oils, which are responsible for producing unpleasant and noxious odors and flavors. These chemical processes may also destroy nutrients in food. Under some conditions, rancidity, and the destruction of vitamins, occurs very quickly.
Ok great instead of neighbor spying on neighbr we've got blogger spying on blogger.
What's next? Edgar Mitchell's Aliens to take over oversight of Fannie and Freddie?
Sheesh.
The enemy is within!
Maybe you can sleep, but the FDIC never does.
Right Sheila?
FDIC certainly won't be sleeping this weekend. I suspect.
I think this whole greasy hair thing is getting too wild and if we allow FDIC to wage to many battles, then we will end up looking like The Nazis post WW ll.. do we have to go through this, and then in the process, ignore constitutional rights?
why is it that BR always has "the inside scoop" after it means nothing??
His post, and more importantly his example, would have been far more prescient about a month ago.
I seem to recall another example of this earlier in the year. After the fact.
but I guess I'm biased as I've had many posts removed earlier in the week that refuted his "short interest at record level" post.
He's lost the big picture imo.....oh a friend of mine emailed me his "funny" photoshop post. I guess that's what's been going on at the BP.
Sad and late.
Ciao
MS
I'm shocked by these accusations. Shocked, I tell you. Intimidating appraisers. Stunning. Who could have ever believed such unsavory behavior was occurring? Not me. Not me.
The Bair Witch Hunt?
At least Wamu doesn't have any appraisal fraud. It was apparently confined to Countrywide and Indymac.
New meat.
New, racid meat. Can new meat be rancid or does rancity develop only as a result of age?
A petition with 8,000 signatures asking for federal intervention in 2005 and we're just now hearing about it? Any way of finding out who all got copies of the petition?
From my copy of "Holding Someone Accountable for Dummies":
"There's no such thing as private embarrassment. If you want results, make your beef public. Document the facts - not the emotions - and calmly send them to everybody - the press, the consumer groups, the watchdogs, the big dogs, the little dogs; in short, everyone you can think of. And list all their names at the bottom of your cover letter so that EVERYBODY KNOWS they all know. Do this whether you're fighting City Hall or your fighting your dry cleaner. Public embarrassment. That's how you keep a problem from being swept under a rug."
Anonymous writes:
why is it that BR always has "the inside scoop" after it means nothing??
His post, and more importantly his example, would have been far more prescient about a month ago.
Well, the guy (Vernon Martin) wasn't going to make all of the nasty details public until he didn't have worry about IndyMac's lawyers coming after him. Can't say that I blame him. We probably won't hear the really juicy stuff on WaMu until after they go under, as well.
Blatant fraud committed - whose fortune was seized by the FBI, and who is in jail?
Claude Raines is ready for his close up.
This post smells of a morality play. Committing fraud and being greedy was just the pragmatic thing to do. Those ideologues who refuse to reason with management will be fired!
Turns out that nut DA in San Diego, Aguire, was foreclosed upon by Countrywide.
Try not to laugh when you read what street his house was on.
bubbleinfo.com » Page not found
Hello, I would like to join your excellent blog. I believe I can be of value to your organization by helping with information, organization, inducing unnecessary bank runs, obtaining automatic weapons and paramilitary uniforms and terrorist literature or other resources required to be a blogger. Please feel free to contact me and request equipment or detailed operational planning assistance at radicalblogger1@doj.gov. I am truly united with the rest of the radical extremist community in sincere admiration of your struggle. Solid!
Joh
So far, we have found out that all this Housing and Financial mayhem is due to short sellers, a Senator, and some bloggers.
Nothing about fundamentals, irresponsibly low rates, and an utter malfeasance of regulatory supervision.
John Dough writes:
Hello, I would like to join your excellent blog. I believe I can be of value to your organization by helping with ....
Sir,
I have at your request placed the sum of three trillion one hundred and eighty billion US dollars in the good good faith account at the US Treasury Dept as you requested. Since that time I have not heard from you nor has my pony arrived. When may I expect delivery?
"whose fortune was seized by the FBI, and who is in jail"
The goods were sold to taxpayers for cash now sitting in a few offshore accounts and nobody is going to jail; but, the taxpayers who will be on slaving to payoff the debt.
BTW - "malfeasance of regulatory supervision"...for financials is nothing like the regulation of insurance companies: Example, in British Columbia, Canada, licensed insurance adjusters can choose money over human life if it benefits their client, an Insurer - and this is perfectly fine according to the regulators who dish out licenses to adjust insurance claims.
Nothing about fundamentals, irresponsibly low rates, and an utter malfeasance of regulatory supervision.
You want substantive discussion in an election year? From the gov't? You slay me.
But seriously, spend some time in DC and you will realize that the only way to get something cleaned up quickly is if
And even then it's difficult.
Try not to laugh when you read what street his house was on.
I tried, and failed. That's just too damn funny.
-Jaso
google Mr. Martin and you find the original in the appraisal blogs...about a month old...days before the FBI investigation was announced.
Of course, bet a $1 there was a terse conversation between the Senator and the CEO a day before the "concerns about Indymac" letter was accidentally released.
A petition with 8,000 signatures asking for federal intervention in 2005 and we're just now hearing about it?
Well, some of us have known about it for a couple of years. Appraisers, even as a group, don't have a helluva lot of power--unless you count the 454 cubic inch engines in their early model LTDs. Now, that was some power.
vacant homes-
IMO that's being part of the problem and not the solution. Again it's late and not relevant since it's already happened.
No different than the "happy news" we are force fed each day. But I gather it will generate hits....
Ciao
MS
Kinda OT.
FWIW, here is an email from a realtor here in Canada:
What's happening in Real Estate?
June records still show a healthy market. Sales were down in the GTA (toronto) 18% from last June ~ but that was the hottest June ever. Average price at $395,866 is up 4% from last June. Number of properties for sale or lease is up 22% from June '07
Expect to see a more balanced market after 11 years of steady growth of between 4 and 8% annually. There will be more houses on the market and a slower overall prices increase. We may also see some depreciation.
It's a great time to BUY, whether first-time or investment properties >> more options and less competition. It's a great time to UPSIZE >> you will benefit more by selling your less expensive property and buying higher... but be sure to sell first ~ it may take more time than previously.
If a bum steals a six-pack, there is hell to pay.
When these white collar criminals steal millons... not so much.
The moral of this story is this - never steal small amounts. Steal BIG.
Teach your children.
yes Barry...and your "friend" watched it all happen with a front row seat and choose to do nothing until after the fact.
Don't you have some pictures to photo-shop or something?
Ciao
MS
... The moral of this story is this - never steal small amounts. Steal BIG.
The pithy version:
You can steal a lot more with a briefcase than with a gun.
OT-- Oakland, CA city attorney to sue muni bond insurers.
The blame meme game continues.
Blazing Saddles suits every occasion:
"We've gotta protect our phony baloney jobs, gentlemen! We must DO SOMETHING, immediately! Maybe I could turn this thing to my advantage...."
O/T
No Mo Money!
DETROIT (Reuters) - Chrysler LLC's financial arm on Friday said it would stop offering vehicle leases to U.S. consumers, a sharp break in strategy in response to plunging resale prices for gas-guzzling trucks and tighter credit
Chrysler financial arm to stop leasing vehicles
| Reuters
No, no, we cover all the pinko bloggers.
Sheila was very adamant about this point.
Now, as soon as we can the FISA authorization on the wiretap....
JP,
Shouldn't that read: "You can steal more with a bazooka than a squirt gun."
Who'd have guessed?
Gee, I thought the whole housing Bubble was legit and that everyone could afford to buy houses at 5x, 8x, and 10x their incomes! Hey, why even document income - we trust yah, right?
Ban Ritholtz
So I guess a Bair Market is one that blows to hell, but nobody is allowed to talk about it.
Sheila should have been keeping an eye on the pimps on the teevee who were working people into a frenzy during the mania stage.
From Bulls and Bears to Bullsh*t and Bairs. Great.
"From Bulls and Bears to Bullsh*t and Bairs. Great."
Love it....quote of the year!!
Ciao
MS
Nothing about fundamentals, irresponsibly low rates, and an utter malfeasance of regulatory supervision.
what is this nonsense
Tanta,
You are on notice for that crack about the FDIC. They are our savior and you are in no position to be critical of them.
If the FDIC maintains a bank list of troubled banks, doesn't that mean they have to monitor themselves.
Banned by Ritholtz writes:
Ban Ritholtz
Banned by Ritholtz
cut it out MS, we know it's you
roflmao
Ask Tanta/CR for an IP address. I can assure it's not me.
How's that research going on the NASDAQ statement a few day's ago....did you finally figure out your are FOS??
I bet you did.
Ciao
MS
"Now, as soon as we can the FISA authorization on the wiretap...."
You are seeking authorization?
Sheila says you're fired.
i think it was an innoncent mistake of mine, based on your wording that you still believed nasdaq qouble printed the buy and sell transaction to the tape, known as double printing.
89% of the time, i agree with stuff you say... and then there's that 11% where you go off on a tangent like you have one to many bong rips
deutschBag:
Dude...let's not be so inflammatory. Maybe the 11% is from stress...or too much booze.
Ive been lurking on this site reading and learning for many months, and this post has led me to finally comment.
In 2005, I was building a house with the use of a construction loan, the company that I went through for this had their 'preferred' lender that they almost forced me to use, to the point of harassing visits to the place I was living threatening to pull the loan if I didnt use their lender and convert the construction loan immediately.
At the time, I was still in the process of learning all the fine details of how the different types of loans worked, so I wasnt exactly as well prepared as I should be. But what they were trying to offer me was so far into the territory of fraud, that even I noticed it.
From my own appraisals that I had done independently, I was expecting a fixed loan of around 185K after I rolled the construction costs into a 'regular' mortgage. However, THEIR appraisal was for over 230K, and the loan they wanted to put me in was an 3-yr ARM loan. The 'bait' was that they were trying to have me take the cash difference at closing of over 40K. Now Ive had my bad luck with Credit way back in my teens, and I know theres no 'free money' and that somehow or someway, Id be paying back that 40K that was cashed out.
luckily, I didnt take the bait and get sucked into that great offer. At the time, I couldnt help but think how often that practice was occuring. And as time has gone on, I came to realize it happened VERY often.
In the end, I rushed to get the loan I have now, wich is a fixed 30-yr, to avoid the contant threats by the construction loan company. I learned through a trial by fire so to speak, exactly how messed up and unsustainable the whole mess had become, and it was shortly after that time that I opened my eyes to the possibility that there could be a very large problem that results from these kinds of practices with something as important as someones home.
Thanks for reading this one guys experience, I can only hope that the people who took the easy money were simply investors, and this practice didnt affect too many people who actually used their house to live in, instead of to make a quick buck off of.
11% from bong rips, you sure that does not have a plus or minus 10% factor like new home stats...He might not be hitting the bong at all or he could be pilfering CSC's stash at 21%
CSC-I'll guard it on the cheap...
"i think it was an innoncent mistake of mine, based on your wording that you still believed nasdaq qouble printed the buy and sell transaction to the tape, known as double printing."
So you can admit when you are wrong?? or is that some underhanded sleight back at me??
I bet...If you were not in such a rush to "correct" me.....you might catch it when I do screw up. We all do at some point.... although it seems like you wait for me to do so.
as far as the above comment....may be someone else agrees with me??? Nah that couldn't happen as I "know nothing".
Ciao
MS
sorry csc. your right, his tangent's due seem more like a white strip or crystalline rock issue.
Thanks, RevolutionNotBeTelevised, for the real stuff. I fear that your hopes of retail borrowers not getting soaked are, not going on. You're smarter than most.
Well, now we enter into a period that I call the pause that refreshes.
Until the next bank fails.
Then volatility is really going to rip.
Everyone is sure oil is done.
I took my money off the table.
Homebuilders are a much better short.
Thanks to whomever posted urbn.
I like them for some serious damage.
time to watch Fast money make it obvious that things are bad.
Someday this war's gonna end...
For any of you waiting anxiously for a bank receivership announcement, AZ doesn't like DST, so it'll probably be after 8P ET before any formal announcement hits the wires...
o sleight, MS. this all goes back to your recinded heloc. one of your tangent days. i really thought it was you with the ban barry comment, and thought it was hilarious , and would have been apropos
tgif, have a great weekend
In case you were unable to read it the first time DB here it is again:
FinanceProfessor.com: Nasdaq vs NYSE Volume from the JFR Abstracts of the Forthcoming Articles
There are several other credible sources but I'm sure I'd be wasting your time by posting them all.
try a search for yourself....I'll even give a well known link to start with:
Google
Ciao
MS
MS -
Instead of posting as anonymous and signing your posts, would you be so kind as to use the name part of the posting system?
OT but awesome:
Bruce Fein hits a homer.
YouTube - Hearing on Limits of Executive Power: Bruce Fein
Long live the King.
Get your albatross!
http://youtube.com/watch?v=Z_u7VGiMO0U
Does anyone find themselves starting to believe Jas Jain?
Does anyone find themselves starting to believe Jas Jain?
The guy is a prophet, but like most prophets, insufferable.
MS=Michael Schumacher
There you go....
Ask BR about it I'm sure he'll have lots to say including attributing statements to me I've not made. But I see how that's pretty effective when you delete the real ones from the blog.
Ciao
MS
LibVet writes:
If a bum steals a six-pack, there is hell to pay.
When these white collar criminals steal millons... not so much.
"steal a little and they'll throw you in jail
steal a lot and they make you the king!"
bob dyla
My mother has an IndyMac mortgage and when she was refinancing, the appraiser supposedly just drove past the house to do the appraisal. That's what she was told, at least, she never saw anyone. I'm no expert, but that always seemed sketchy to me.
RevolutionNotBeTelevised
at 4:58 pm
thanks for tellin it like it is
"What's next? Edgar Mitchell's Aliens to take over oversight of Fannie and Freddie?"
Could they do any worse of a job?
My weekly OT post of up-to-date PE Ratios of the major indices, from the WSJ$ Market Data Center:
Nasdaq = 27.43
S&P 500 = 22.95
Russell 2000 = 2470 (must be a typo)
These are calculated using Trailing 12 Months earnings. If you prefer to believe the fantasy-based forward earnings estimates, you're welcome to drink that Kookaid.
Sorry that was an (appropriate) inadvertent typo...Kookaid should have been Koolaid.
Reggie on GS
Safe Haven | The Goldman Sachs Forensic Analysis
A little chuckle for the WE..........Q:Why do mice have small balls?.........A:Because most of them can't dance.
The Fed, Fannie, Freddie, etc, didn't have anything to do with this mess. It was Joe 6Pack - the realtor, John GED - the mortgage broker, and Jerry 7-Eleven - the appraiser. And because of their lack of fiduciary relationships (see Tanta's posts for more info.) we are now in this horrible situation.
P.S. The Global Warming also played an important role; Joe, John, and Jerry got very hot.
Oh, pitchforks, that was so bad it went under me.
Don't feel bad, Liz - I had to think about it too!
CSC - that Fein video is stunning. Look at his credentials - he was ADAG under Reagan, so not exactly a shrinking lib.
Michael Schumacher -- you were insufferable at the Big Picture, and you are insufferable here.
The thread where you were unpublished you were off topic and obnoxious -- you deserved to be unpublished.
Time for Mike Shumacher to get his own blog . . .
"4runner writes:
Does anyone find themselves starting to believe Jas Jain?
4runner | 07.25.08 - 5:23 pm | #"
I do, but then, I'm a born and bread dope.
MitchN,
Somebody had to say it. Thx
oland
Many writing the multitude of types of market insurance incorporate "dynamic hedging" strategies. This means that few hold little in the way of actual "reserves" to pay in the event of major losses. Instead, they rely on "shorting" various securities that, in a declining market, will provide the necessary cash-flow to satisfy any insurance obligations. This all worked wonderfully in theory, and the basic premise of modern day risk hedging capabilities was supported by the nature of highly liquid boom-time financial markets. But "torrential rains" have a way of rapidly and dramatically altering marketplace liquidity. The reality is that entire markets cannot insure themselves again declines. Any attempt by a large swath of the marketplace to hedge exposure will be problematic. Selling will either immediately overwhelm the market or the "put options" accumulated as protection will create acute market vulnerability to self-reinforcing selling pressure and market dislocation.
Today, there is little liquidity in the securitization or corporate bond markets. So, the multi-Trillions of strategies relying on shorting securities for hedging and speculating purposes have gravitated to the relative liquidity of U.S. equities. And, when it comes to hedging against or seeking profits from heightened systemic risk, one can these days see rather clearly how incredible selling pressure can come down hard on the 19 largest U.S. financial institutions. And when one considers the scope of derivative strategies that incorporate "delta hedging" trading dynamics - where the amount of selling/shorting increases as the market declines (systemic risk increases) - one recognizes the possibility of a marketplace dislocation along the lines - but significantly more systemic - than the "portfolio insurance" fiasco that fueled the 1987 stock market crash.
makes me think of cedar rapids
I like Kookaid better.
Who knows what the TTM P/E of the Russell 2000 really is?
Earnings of small-caps are plummeting, and the number that have negative earnings is growing. As the total earnings of all 2,000 companies gets closer to zero, the P/E can fluctuate quite a lot, even from week to week. Eventually, as earnings go below zero, the P/E becomes infinite.
Yes, negative earnings always bounce back. But this time, I don't think they'll bounce back very fast for small-caps. In part because the debt burdens and financing costs will be great for a long time to come.
The NASD briefly went to infinite P/E at one point in 2001. But remember, the NASD has a lot of earnings megamonsters like Microsoft.
When I heard this week that the Russell 2000 got a lift from all its airline components this week, I just laughed. Who would have thought the biggest airlines in the U.S. would all be small-cap?
GM will be there soon.
ugh
1st greasy sheila, now
Police director sues for critical bloggers' names
Police director sues for critical bloggers' names» The Commercial Appeal
Mixed metaphor madness.
"We haven't broken the relationship between the dollar and the commodities, but we have broken the speculative bubble," says Emily Sanders, CEO of Atlanta-based Sanders Financial Management. "The speculators are jumping for the exits at the moment so they don't get hit by a freight train. But that doesn't mean it can't turn on a dime."
MSNBC: The Dollar Stages a Comeback the Hard Way
What fraud? According to Congress its our national right that housing prices never decline. Therefore housing appraisals must always go up, up, and away!
GE Funding Capital Market Services on July 21 received a "Wells notice" indicating the SEC staff is considering recommending action against the company over the way certain former employees bid for municipal securities, the company said.
It said it is one of several companies to have received Wells notices in connection with the matter.
GE says funding arm receives Wells notice from SEC
| Reuters
A notice in every pot. As for fraud the whole system is based on fraud with the hook being that a piece of paper in a fractional reserve banking system has some magic value other then being good for wiping ones butt with.
The economy could have gone into a serious inflationary spiral, or it could have gone into a serous depression. But it won't. TPTB have opted for a giant bailout and a 12-15 year recession (ie Japan). At least now we know the probable out-come of this disaster.
US Treasury to boost 10-year note sales as fiscal deficit swells
Driving the need to expand borrowing is a deteriorating budget situation, driven by falling corporate income taxes and continued high spending for the wars in Iraq and Afghanistan, as well as an economic stimulus program to support the economy.
A housing rescue package due to be approved by the Senate on Saturday adds an additional $4 billion in grants to communities to repair homes, and if housing giants Fannie Mae and Freddie Mac need government bailouts, the price could be around $25 billion, according to congressional researchers.
Since late April, the government has sent out $91.8 billion worth of tax rebate checks to 112.4 million American families and individuals, which has helped to prop up consumer spending. The bulk of the checks have gone out, but small batches will continue to be sent as households file late tax returns.
The White House is expected to release its latest budget deficit estimate on Monday for the 2008 fiscal year ended September 30, and analysts expect it to climb into record territory from the $410 billion estimated in February.
This compares with $163 billion in fiscal 2007 and a record $413 billion in 2004.
Through the first nine months of fiscal 2008, the government's deficit was $268.7 billion, compared with a $121 billion deficit for the same period a year earlier.
Merrill Lynch analysts Drew Matus and David Rosenberg estimate that the fiscal 2009 budget deficit will top $500 billion, which presents a "daunting" task for the Treasury of arranging $1 trillion in financing next year. It will have to turn to the 3-year note to close the funding gap
US Treasury to boost 10-year note sales as fiscal deficit swells
| Reuters
More supply, less demand, Uh Oh, sounds like the housing market and this is all they have planed not including all the other crap that is more then likely to start blowing up.
rich,
I wonder when Russell 2000 stock prices will drop to bring that PE ratio back to sanity? I'm astonished how it stays aloft despite the ongoing credit crisis!
Investors are definitely drinking kookaid.
White collar crime is now the backbone of our post-industrial nation.
From building to bilking in only 50 years!
mitchn and anon-
How would you even know?? Most of my posts were gone within a scant few minutes of posting. I also thought it was cute that he accused me of calling him a "dick" for agreeing with him-I didn't agree with him. I even offered to apologize to him (and the rest of the board) if he could produce the post in which it allegedly occurred. But I'm sure you never saw that one either.......
Makes me wonder about his claim regarding kicking someone else off for being anti-semitic. I was active on that day and NEVER saw anything like that...but I did see what I posted even if only for a minute or two.
If providing real backup in order to refute an obviously poorly researched statement is being "obnoxious" then color me guilty.
Ciao
MS
I work on small cap stocks for a living. The Russell 2000 rebalanced at the end of June. A lot of companies with great earnings became large caps. Instead companies like Ambac and MBIA replaced them (because the index is based on market cap). For each Ambac that is now in the index that has lost billions, the earnings of several companies who were always small cap and do make money gets canceled out.
@shortcourage
It doesn't matter how much the stock prices drop, earnings are basically zero. The E in the P/E is all that matters with such low earnings. A common practice on Wall St. is to not include negative earnings or use forward P/Es (which are based on predicted operating or core earnings, and are therefor always positive).
So again I ask, can new meat be rancid or does rancity develop only as a result of age?
Elvis, the answer is yes.
Thank you. It is an answer and better than "7."
"8"
no, "8 1/2"
"Pretty Vacant"
Has an ironic ring to it nowadays...
Hmmm.
"Oh were so pretty oh so pretty vacant..."
YouTube -
that always seemed sketchy to me.
My appraiser did a little more than that when we refinanced in 2002(not IndyMac), but I was surprised he didn't come in to check if all the utilities worked, that we hadn't knocked a hole in one of the walls, etc.
As for rancid foods: