The men the American people admire most extravagantly are the most daring liars, the men they detest most violently are those who try to tell them the truth. -- H.L. Mencken
"Only a man who knows what it is like to be defeated can ... come up with the extra ounce of power it takes to win." - Muhammad Ali
Some parts of the secondary mortgage market have ground to a halt in recent days as investors shun many types of mortgage securities that don't conform to Fannie and Freddie's standards. See full story.
I'm microwaving my popcorn for The Sequel.
When the implicit guarantee gets tested.
Yes - dollar goes to shit.
No - No mortgages of any kind will be underwritten.
"It's tough to make predictions, especially about the future" Yogi Berra
"If you believe people are rational beings, you will go through life frustrated and confused" Scott Adams
"Don't dig the dialog of denial"
"No, I don't know that atheists should be considered as citizens, nor should they be considered as patriots. This is one nation under God." George W. Bush
CFC is pretty dover sold right now, but maybe they don't really have access to $50 billion like they claim. Even if they did, that's only good for 500,000 overpriced homes in CA.
Of course, if CFC really NEEDED $50 billion, no 'effin way they'd be gettin' it now.
“Construction of new houses along the Wasatch Front has plummeted this year ‘almost entirely’ because of a decline in affordability, according to a new report from Wells Fargo & Co.”
“In 2007, builders have taken out permits to build 6,875 houses, down 29 percent from 9,707 permits during the same time period in 2006, according to Construction Monitor.”
“‘It’s not an economy problem or a mortgage rate problem,’ economist Kelly Matthews said at a news conference. ‘It’s a pricing problem. We have seen a tremendous decline in affordability.’”
“As an example, he points out that a family with an annual income of $51,000 in 2003 could have purchased a house valued at Salt Lake County’s average sale price of $187,000 with a 5 percent down payment. The buyers would have had a monthly payment of $1,300, with interest rates at the time in the range of 5.4 percent.”
“In the second quarter of this year, a family would have needed an annual income of nearly $90,000 to purchase a house priced at Salt Lake County’s average of $298,000 with a 5 percent down payment. The monthly payment would be about $2,250, Matthews said, with interest rates of 6.5 percent.”
“The problem is that most families did not nearly double their incomes over the past four years, he said.”
The men the American people admire most extravagantly are the most daring liars, the men they detest most violently are those who try to tell them the truth. -- H.L. Mencken
"Only a man who knows what it is like to be defeated can ... come up with the extra ounce of power it takes to win." - Muhammad Ali
Check out the one-minute chart on the SPY. There's one massive 5M buy order at the end to jam this to close at the intra-week lows.
But today's bottom pierces the previous bottom on Wednesday.
Thoughts??
Revenge for the stick save?
"WE ARE BEING KEPT ALIVE by the Entropic movement of Dark Matter(Sino-Nippo-dollar purchasing of $UST)---as soon as there is a ringing sound,a sign of an clogged artriosclerotic wormhole on the emergency fiat-meter it will end--dynamic equilibrium,will have been achieved;better known as death" -- beardrech (Mar 15 2006, 01:17 AM)
"There's a good chance he was drunk or drugged. Only an idiot would jump into the bear cage." -- Belgrade Zoo Director Vuk Bojovic (August 20, 2007).
It's like you're dreamin' about Gorgonzola cheese when it's clearly Brie time, baby. -- Hitchhiker (S.A.M. 1998)
Mar 28 2003: July 2003 is the time I have identified as the low of the bear move...then the first leg of the bear is over ...many will be caught by surprise to see the market near it's all time high again within 3-4 years [2007] ..."depression" similar to 1932 doesn't come until 2010. -- blackbelt (Mar 28 2003, 10:05 PM)
That is a really old photo!! Have you seen the bags under her eyes lately? And they keep adding younger and younger reporters. That's got to leverage the bad eye days with extra stress.
"WE ARE BEING KEPT ALIVE by the Entropic movement of Dark Matter(Sino-Nippo-dollar purchasing of $UST)---as soon as there is a ringing sound,a sign of an clogged artriosclerotic wormhole on the emergency fiat-meter it will end--dynamic equilibrium,will have been achieved;better known as death" -- beardrech (Mar 15 2006, 01:17 AM)
"There's a good chance he was drunk or drugged. Only an idiot would jump into the bear cage." -- Belgrade Zoo Director Vuk Bojovic (August 20, 2007).
It's like you're dreamin' about Gorgonzola cheese when it's clearly Brie time, baby. -- Hitchhiker (S.A.M. 1998)
Mar 28 2003: July 2003 is the time I have identified as the low of the bear move...then the first leg of the bear is over ...many will be caught by surprise to see the market near it's all time high again within 3-4 years [2007] ..."depression" similar to 1932 doesn't come until 2010. -- blackbelt (Mar 28 2003, 10:05 PM)
Crapvision reporters are complete morons......."wha, where's the FED!!!"
What?
What that wingohockingmoyamensing can the Fed do to fix this?
Answer: Nothing.
Lower rates, that's the ticket!!
Answer: No it's not! It has nothing to do with the problem at hand, nor will it fix it.
The only way the Fed could help is to buy all the CDO's, CMO's, LDO's, and other toxic waste that's out there and that will not (could not) happen.
Bottom Line: The market is repricing risk -- and dat's dat bitches!!
Finally, maybe I'll be able to buy some long dated stuff that yields 10-15%.....ah, remember the Volker days!!!
They weren't just calling for a rate cut. They were calling for a emergency gathering like LTCM. They want the FED to call all the kleptocrats to a secret meeting to figure out how to stick it J6P. With record bonus on wall street last year, a bail out of the super rich won't sit well. They'll spin it as helping the poor with some paltry sum going to aid "foreclosure" and the rest going back the WS mafia.
Not to mention all the key insider selling the past 2 years, if the press had any sense, they would start writing the mother of all kleptocrat's ball articles.
"WE ARE BEING KEPT ALIVE by the Entropic movement of Dark Matter(Sino-Nippo-dollar purchasing of $UST)---as soon as there is a ringing sound,a sign of an clogged artriosclerotic wormhole on the emergency fiat-meter it will end--dynamic equilibrium,will have been achieved;better known as death" -- beardrech (Mar 15 2006, 01:17 AM)
"There's a good chance he was drunk or drugged. Only an idiot would jump into the bear cage." -- Belgrade Zoo Director Vuk Bojovic (August 20, 2007).
It's like you're dreamin' about Gorgonzola cheese when it's clearly Brie time, baby. -- Hitchhiker (S.A.M. 1998)
Mar 28 2003: July 2003 is the time I have identified as the low of the bear move...then the first leg of the bear is over ...many will be caught by surprise to see the market near it's all time high again within 3-4 years [2007] ..."depression" similar to 1932 doesn't come until 2010. -- blackbelt (Mar 28 2003, 10:05 PM)
