Subprime Market

[Oldcoin]

Do you think the subprime mortgage market issue, and its potential impact on the economy, is being overblown?

Response Total Response Percent
Yes 130 51%
No 124 49%
Total Respondents 254



http://tinyurl.com/yuypyu

 

[tsptalk]

The bulls say yes, and the bears say no.

 

[weatherweenie]

Greenspan: Subprime Spillover Unlikely
Thursday March 15, 4:33 pm ET
By Brian Skoloff, Associated Press Writer Greenspan Sees Little Threat to Economy From Risky Mortgage Troubles, Unless Home Prices Drop

http://biz.yahoo.com/ap/070315/greenspan.html?.v=2

Greenspan Says He Expects Subprime-Mortgage Fallout to Spread
By Steve Matthews and Scott Lanman

March 15 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said he expects the fallout from subprime-mortgage defaults to spread to the broader economy, especially if home prices decline.

``If prices go down, we will have problems -- problems in the sense of spillover to other areas,'' Greenspan said in remarks to the Futures Industry Association meeting in Boca Raton, Florida today. While he hasn't seen such spreading yet, ``I expect to.''

http://www.bloomberg.com/apps/news?pid=20601087&sid=aMNo.k9C9eP8&refer=home

We’ve been Greenspanned again!

 

[Oldcoin]

Greenspan: Subprime Spillover Unlikely
Thursday March 15, 4:33 pm ET
By Brian Skoloff, Associated Press Writer Greenspan Sees Little Threat to Economy From Risky Mortgage Troubles, Unless Home Prices Drop

http://biz.yahoo.com/ap/070315/greenspan.html?.v=2

Thanks, this it is funny, same story, different headlines. Don't you just love the spin?

Prices in my part of the world have really been dropping. I don't know if it has slowed, but it's hard to imagine the 10% increase that Greenspud is talking about in todays market.

Do you suppose he got called on the carpet for using the R word?

 

[Wolverine]

Does Greenspan continue to think that he is a Legend in his own mind?

 

[Oldcoin]

http://tinyurl.com/2mjog5

Accredited Home selling loans at discount
Subprime lender's move prompted to meet margin calls

NEW YORK (MarketWatch) -- It's fire-sale time in the subprime mortgage sector.

Man can you imagine the deep discounts on these loans. I don’t know at what price I’d be a player, but they would have to be real cheap.

 

[Oldcoin]

Does Greenspan continue to think that he is a Legend in his own mind?

I think his influence is waning, but people still listen to him. I’ll bet he was very surprised to the markets reaction to his remarks about inflation and recession.

 

[Oldcoin]

As subprime crisis deepens, some fight back

http://www.reuters.com/article/topNews/idUSN1516483920070316?pageNumber=1

The real carnage in the subprime market will be people like these.

 

[Oldcoin]

http://tinyurl.com/2qugwe

Wall Street reassures on subprime, but there are skeptics

NEW YORK (MarketWatch) -- The U.S. subprime mortgage crisis hasn't spread to other fixed-income markets, investors still crave mortgage-backed securities because loan standards have tightened, and - why worry anyway? - since subprime loans are a mere cog in investment banks' profit machine.

 

[Oldcoin]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aEBXaOLW5leE&refer=home

Worst of Subprime Rout Absorbed by Investors as Markets Rebound
By Shannon D. Harrington

March 23 (Bloomberg) -- Whatever scare rising defaults of subprime loans wreaked on stocks and bonds may already be on the wane.

``The troubles in the subprime market won't affect the rest of the world,''

Neil Jones, head of European hedge fund sales at Mizuho Financial Group Inc. in London, said in a March 20 interview.

While everyone from Alan Greenspan, the former chairman of the Federal Reserve, to Bill Gross, manager of the world's largest bond fund, have acknowledged that mortgage defaults may slow the economy, Wall Street's biggest securities firms aren't fretting. The ``subprime risk flare'' will likely subside by early April, said Jack Malvey, global head of fixed-income strategy at Lehman Brothers Holdings Inc.

 

[Oldcoin]

Subprime Foreclosures May Hit 2.4 Million, Group Says (Update1)

By Stefan Whitney

March 27 (Bloomberg) -- As many as 2.4 million Americans may lose their homes because of the collapse of subprime lenders, the Center for Responsible Lending said in testimony to Congress.

http://www.bloomberg.com/apps/news?pid=20601170&sid=a.j_Sz1mnTT4&refer=home

 

[Oldcoin]

Associated Press
Beazer Homes Faces FBI Investigation

Associated Press 03.27.07, 6:52 PM ET

Beazer Homes USA Inc., which has recently suffered hefty losses amid a downturn in the housing market, now faces a federal investigation of mortgage fraud and other allegations involving the homebuilder. Beazer shares plunged 15 percent in after-hours trading Tuesday

http://www.forbes.com/feeds/ap/2007/03/27/ap3557148.html

 

[James48843]

Subprime Foreclosures May Hit 2.4 Million, Group Says (Update1)

By Stefan Whitney

March 27 (Bloomberg) -- As many as 2.4 million Americans may lose their homes because of the collapse of subprime lenders, the Center for Responsible Lending said in testimony to Congress.

http://www.bloomberg.com/apps/news?pid=20601170&sid=a.j_Sz1mnTT4&refer=home

Now tell me that isn't going to be a big hit on the economy, if it reaches 2.4 million foreclosures.....

 

[The_Technician]

Now tell me that isn't going to be a big hit on the economy, if it reaches 2.4 million foreclosures.....

For some reason I would like to see Birchy's and the Sponsors faces right now.....reality really bites at times....

 

[ATCJeff]

Now tell me that isn't going to be a big hit on the economy, if it reaches 2.4 million foreclosures.....

You have to remember there are apprx. 100 million households in America. 2.4 mil represents a very small fraction of mortgages. I would think that most of these homeowners were already short of desposable income. I think the effect on the ecomony will be small.

However, the effect on housing could be huge. I am undecided if sub-prime problems will spill over into other areas.

 

[The_Technician]

You have to remember there are apprx. 100 million households in America. 2.4 mil represents a very small fraction of mortgages. I would think that most of these homeowners were already short of desposable income. I think the effect on the ecomony will be small.

However, the effect on housing could be huge. I am undecided if sub-prime problems will spill over into other areas.

Combine those numbers with the dive in the number of construction permits and then the dive in the housing prices....along with the dive in auto sales, along with.....and so on ......avalanche could happen basically caused by the overgreediness of US corps over the last 10-15 years......would one expect that you could continue to sale items to consumers who haven't gotten a paralleled rise in income for the rise in the cost of living for the same period.....NOOOOOOOOOO!!!! DUHHH!!! The only hope you have is to continue to grow a new economy.....it would be smart for one to continue to look for new employment with raises to go along with the moves.....its the fastest way to "eqvacate" (is that a word??) the situation......of course the corporations could drop prices of the cheaply manufactured goods from overseas here locally, that would help.......

 

[Oldcoin]

For some reason I would like to see Birchy's and the Sponsors faces right now.....reality really bites at times....

Well for those folks that are hard core DCAers it gives them a chance to lower their average cost, of course.

On a longer view and in light of the durable goods report today, there appears to be a greater slowing of the economy from the Feds actions. I think we are all expecting the economy to slow this year, the question is how much? I’ve often compared the U.S. economy to a ship at sea, when you put on the brakes it takes a long time to get her stopped; over apply the brakes and you end up going backwards.

 

[ChemEng]

I’ve often compared the U.S. economy to a ship at sea, when you put on the brakes it takes a long time to get her stopped; over apply the brakes and you end up going backwards.

Interesting analogy. Although ships in general make me .

 

[Oldcoin]

Interesting analogy. Although ships in general make me .

I’m saving the Titanic analogy for later in the year

 

[Oldcoin]

http://ml-implode.com/

The Mortgage Lender Implode-O-Meter.

Interesting link to a site that tracks the fate of subprime lenders.