Bernanke Warns of More Foreclosures, Despite Aid

[patientlywaiting]

I don’t think that BofA or Citibank will fail. They are such symbols of American financial might that the Arab investors will buy them.

But regional and local banks will fail for sure. Time will tell.

[cr]

Okay good, I can stop picturing BB in tights and a cape with a $ sign on the front.

[cr]

Okay good, I can stop picturing BB in tights and a cape with a $ sign on the front.

[cr]

Okay good, I can stop picturing BB in tights and a cape with a $ sign on the front.

[cr]

Okay good, I can stop picturing BB in tights and a cape with a $ sign on the front.

[cr]

Okay good, I can stop picturing BB in tights and a cape with a $ sign on the front.

[patientlywaiting]

Remember that the Fed has regulatory powers over the banks as well. There will be some kind of under the radar accounting change that will allow the banks to keep assets at book value instead of having to mark to market.

1) That’s what the Japanese banks did for a whole decade. At that time the Clinton administration was telling them to let the banks fail and open up their market for foreign acquisitions. American banks will soon be all owned by sovereign investment funds.

2) It’s funny how things come around. It wasn’t too long ago that we wanted developing countries such as India, China and Brazil to allow 100% foreign owned companies (such as Citibank, Coke, etc) to operate in their countries.

3) Now that the election campaigning is in full swing, the skeletons of the 1990s will come out again. Remember Charles Keating and Silverado? Locally, we had HomeFed, Imperial Savings, and Great American Savings.

[patientlywaiting]

Remember that the Fed has regulatory powers over the banks as well. There will be some kind of under the radar accounting change that will allow the banks to keep assets at book value instead of having to mark to market.

1) That’s what the Japanese banks did for a whole decade. At that time the Clinton administration was telling them to let the banks fail and open up their market for foreign acquisitions. American banks will soon be all owned by sovereign investment funds.

2) It’s funny how things come around. It wasn’t too long ago that we wanted developing countries such as India, China and Brazil to allow 100% foreign owned companies (such as Citibank, Coke, etc) to operate in their countries.

3) Now that the election campaigning is in full swing, the skeletons of the 1990s will come out again. Remember Charles Keating and Silverado? Locally, we had HomeFed, Imperial Savings, and Great American Savings.

[patientlywaiting]

Remember that the Fed has regulatory powers over the banks as well. There will be some kind of under the radar accounting change that will allow the banks to keep assets at book value instead of having to mark to market.

1) That’s what the Japanese banks did for a whole decade. At that time the Clinton administration was telling them to let the banks fail and open up their market for foreign acquisitions. American banks will soon be all owned by sovereign investment funds.

2) It’s funny how things come around. It wasn’t too long ago that we wanted developing countries such as India, China and Brazil to allow 100% foreign owned companies (such as Citibank, Coke, etc) to operate in their countries.

3) Now that the election campaigning is in full swing, the skeletons of the 1990s will come out again. Remember Charles Keating and Silverado? Locally, we had HomeFed, Imperial Savings, and Great American Savings.

[patientlywaiting]

Remember that the Fed has regulatory powers over the banks as well. There will be some kind of under the radar accounting change that will allow the banks to keep assets at book value instead of having to mark to market.

1) That’s what the Japanese banks did for a whole decade. At that time the Clinton administration was telling them to let the banks fail and open up their market for foreign acquisitions. American banks will soon be all owned by sovereign investment funds.

2) It’s funny how things come around. It wasn’t too long ago that we wanted developing countries such as India, China and Brazil to allow 100% foreign owned companies (such as Citibank, Coke, etc) to operate in their countries.

3) Now that the election campaigning is in full swing, the skeletons of the 1990s will come out again. Remember Charles Keating and Silverado? Locally, we had HomeFed, Imperial Savings, and Great American Savings.

[patientlywaiting]

Remember that the Fed has regulatory powers over the banks as well. There will be some kind of under the radar accounting change that will allow the banks to keep assets at book value instead of having to mark to market.

1) That’s what the Japanese banks did for a whole decade. At that time the Clinton administration was telling them to let the banks fail and open up their market for foreign acquisitions. American banks will soon be all owned by sovereign investment funds.

2) It’s funny how things come around. It wasn’t too long ago that we wanted developing countries such as India, China and Brazil to allow 100% foreign owned companies (such as Citibank, Coke, etc) to operate in their countries.

3) Now that the election campaigning is in full swing, the skeletons of the 1990s will come out again. Remember Charles Keating and Silverado? Locally, we had HomeFed, Imperial Savings, and Great American Savings.

[SD Realtor]

There is no argument to that. I think we are all in the know that the situation is such that it may not be possible to let the market correct as it should. We have previously speculated that the domestic investment in leveraged obligations is more then anybody cares to acknowledge and this is the underlying cause (IMO) of any such bailouts, extensions, etc… I do believe this is one of the prime reasons why this depreciation cycle cannot be compared to the one in the 90’s or even the Japanese cycle. To me it is quite a bit worse then either of those because of the underlying leverage problem. I think that in the long run, the government (I lump Bernanke in with all those boobs) will need to lean on bedrock institutions and let others pretty much fend for themselves. In other words, I think mainstream banks will be supported by the federal government in one way or another. Lenders will either need to fend for themselves or possibly allow themselves to be swallowed up by banks. Bond insurers will ultimately get bailed out as well.

JWM I guess we interpret different results from the story. When I read,

“As part of the changes, Bernanke recommended that Congress give new, broader powers to the Federal Housing Administration and to the Department of Housing and Development.

Giving more strength to the national housing market, Bernanke said, “would be facilitated by allowing the FHA the flexibility to offer refinancing products to more borrowers.”

Yes he did go long and hard about basically begging investors to allow loan modifications via principal reductions rather then rate mods, but he also spoke a heck of alot about FHA “modernization.”

In the end, I think we would both agree that he said a whole hell of alot of nothing.

SD Realtor

[SD Realtor]

There is no argument to that. I think we are all in the know that the situation is such that it may not be possible to let the market correct as it should. We have previously speculated that the domestic investment in leveraged obligations is more then anybody cares to acknowledge and this is the underlying cause (IMO) of any such bailouts, extensions, etc… I do believe this is one of the prime reasons why this depreciation cycle cannot be compared to the one in the 90’s or even the Japanese cycle. To me it is quite a bit worse then either of those because of the underlying leverage problem. I think that in the long run, the government (I lump Bernanke in with all those boobs) will need to lean on bedrock institutions and let others pretty much fend for themselves. In other words, I think mainstream banks will be supported by the federal government in one way or another. Lenders will either need to fend for themselves or possibly allow themselves to be swallowed up by banks. Bond insurers will ultimately get bailed out as well.

JWM I guess we interpret different results from the story. When I read,

“As part of the changes, Bernanke recommended that Congress give new, broader powers to the Federal Housing Administration and to the Department of Housing and Development.

Giving more strength to the national housing market, Bernanke said, “would be facilitated by allowing the FHA the flexibility to offer refinancing products to more borrowers.”

Yes he did go long and hard about basically begging investors to allow loan modifications via principal reductions rather then rate mods, but he also spoke a heck of alot about FHA “modernization.”

In the end, I think we would both agree that he said a whole hell of alot of nothing.

SD Realtor

[SD Realtor]

There is no argument to that. I think we are all in the know that the situation is such that it may not be possible to let the market correct as it should. We have previously speculated that the domestic investment in leveraged obligations is more then anybody cares to acknowledge and this is the underlying cause (IMO) of any such bailouts, extensions, etc… I do believe this is one of the prime reasons why this depreciation cycle cannot be compared to the one in the 90’s or even the Japanese cycle. To me it is quite a bit worse then either of those because of the underlying leverage problem. I think that in the long run, the government (I lump Bernanke in with all those boobs) will need to lean on bedrock institutions and let others pretty much fend for themselves. In other words, I think mainstream banks will be supported by the federal government in one way or another. Lenders will either need to fend for themselves or possibly allow themselves to be swallowed up by banks. Bond insurers will ultimately get bailed out as well.

JWM I guess we interpret different results from the story. When I read,

“As part of the changes, Bernanke recommended that Congress give new, broader powers to the Federal Housing Administration and to the Department of Housing and Development.

Giving more strength to the national housing market, Bernanke said, “would be facilitated by allowing the FHA the flexibility to offer refinancing products to more borrowers.”

Yes he did go long and hard about basically begging investors to allow loan modifications via principal reductions rather then rate mods, but he also spoke a heck of alot about FHA “modernization.”

In the end, I think we would both agree that he said a whole hell of alot of nothing.

SD Realtor

[SD Realtor]

There is no argument to that. I think we are all in the know that the situation is such that it may not be possible to let the market correct as it should. We have previously speculated that the domestic investment in leveraged obligations is more then anybody cares to acknowledge and this is the underlying cause (IMO) of any such bailouts, extensions, etc… I do believe this is one of the prime reasons why this depreciation cycle cannot be compared to the one in the 90’s or even the Japanese cycle. To me it is quite a bit worse then either of those because of the underlying leverage problem. I think that in the long run, the government (I lump Bernanke in with all those boobs) will need to lean on bedrock institutions and let others pretty much fend for themselves. In other words, I think mainstream banks will be supported by the federal government in one way or another. Lenders will either need to fend for themselves or possibly allow themselves to be swallowed up by banks. Bond insurers will ultimately get bailed out as well.

JWM I guess we interpret different results from the story. When I read,

“As part of the changes, Bernanke recommended that Congress give new, broader powers to the Federal Housing Administration and to the Department of Housing and Development.

Giving more strength to the national housing market, Bernanke said, “would be facilitated by allowing the FHA the flexibility to offer refinancing products to more borrowers.”

Yes he did go long and hard about basically begging investors to allow loan modifications via principal reductions rather then rate mods, but he also spoke a heck of alot about FHA “modernization.”

In the end, I think we would both agree that he said a whole hell of alot of nothing.

SD Realtor

[Author]

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