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Ozzie.
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January 22, 2008 at 11:52 AM #11595January 22, 2008 at 12:03 PM #140748
bsrsharma
ParticipantI don’t know about the “everybody can refinance” part but surely “the banks are going to make all this money off this” is valid. If you have deposits that were earning $2000 interest 4 months back and are earning $1000 interest now, who do you think gets to keep the other $1000? They are still going to collect 19% or 22% from credit slaves but give depositors 3%. That surely helps the bottom line of depository institutions and soothes the MBS ravaged balance sheets a little.
January 22, 2008 at 12:03 PM #140971bsrsharma
ParticipantI don’t know about the “everybody can refinance” part but surely “the banks are going to make all this money off this” is valid. If you have deposits that were earning $2000 interest 4 months back and are earning $1000 interest now, who do you think gets to keep the other $1000? They are still going to collect 19% or 22% from credit slaves but give depositors 3%. That surely helps the bottom line of depository institutions and soothes the MBS ravaged balance sheets a little.
January 22, 2008 at 12:03 PM #140988bsrsharma
ParticipantI don’t know about the “everybody can refinance” part but surely “the banks are going to make all this money off this” is valid. If you have deposits that were earning $2000 interest 4 months back and are earning $1000 interest now, who do you think gets to keep the other $1000? They are still going to collect 19% or 22% from credit slaves but give depositors 3%. That surely helps the bottom line of depository institutions and soothes the MBS ravaged balance sheets a little.
January 22, 2008 at 12:03 PM #141015bsrsharma
ParticipantI don’t know about the “everybody can refinance” part but surely “the banks are going to make all this money off this” is valid. If you have deposits that were earning $2000 interest 4 months back and are earning $1000 interest now, who do you think gets to keep the other $1000? They are still going to collect 19% or 22% from credit slaves but give depositors 3%. That surely helps the bottom line of depository institutions and soothes the MBS ravaged balance sheets a little.
January 22, 2008 at 12:03 PM #141066bsrsharma
ParticipantI don’t know about the “everybody can refinance” part but surely “the banks are going to make all this money off this” is valid. If you have deposits that were earning $2000 interest 4 months back and are earning $1000 interest now, who do you think gets to keep the other $1000? They are still going to collect 19% or 22% from credit slaves but give depositors 3%. That surely helps the bottom line of depository institutions and soothes the MBS ravaged balance sheets a little.
January 22, 2008 at 2:33 PM #140898SHILOH
ParticipantRichard Simmons and Jim Cramer…. have they been seen together at the same time?
January 22, 2008 at 2:33 PM #141122SHILOH
ParticipantRichard Simmons and Jim Cramer…. have they been seen together at the same time?
January 22, 2008 at 2:33 PM #141137SHILOH
ParticipantRichard Simmons and Jim Cramer…. have they been seen together at the same time?
January 22, 2008 at 2:33 PM #141164SHILOH
ParticipantRichard Simmons and Jim Cramer…. have they been seen together at the same time?
January 22, 2008 at 2:33 PM #141220SHILOH
ParticipantRichard Simmons and Jim Cramer…. have they been seen together at the same time?
January 22, 2008 at 3:50 PM #140938Ozzie
ParticipantJumbo’s will come down. First I believe you’ll see Fed Funds rates sub 3% in the next 60 days. Someone will figure out how to create a model for different areas to determine the risk/reward ratio, the likelihood for future property declines, and get a big institution to guarantee it.
If I was Warren Buffet, I’d be setting up direct lending banks in California, New York/NJ and maybe Mass. I’d only offer Jumbo’s to owner/occupied individuals with FICO’s over 700, 20% equity (with appraised values from appraisers that work for me), and documented assets of at least 10% of the home’s value in cash. No brokers. He could get his Geico guys to run the operation. I’d service the loans for a year and then collateralize them. Do you think there would be any buyers for Buffet CDO’s yielding double what T-Bills are selling for? He’d be printing money.
January 22, 2008 at 3:50 PM #141161Ozzie
ParticipantJumbo’s will come down. First I believe you’ll see Fed Funds rates sub 3% in the next 60 days. Someone will figure out how to create a model for different areas to determine the risk/reward ratio, the likelihood for future property declines, and get a big institution to guarantee it.
If I was Warren Buffet, I’d be setting up direct lending banks in California, New York/NJ and maybe Mass. I’d only offer Jumbo’s to owner/occupied individuals with FICO’s over 700, 20% equity (with appraised values from appraisers that work for me), and documented assets of at least 10% of the home’s value in cash. No brokers. He could get his Geico guys to run the operation. I’d service the loans for a year and then collateralize them. Do you think there would be any buyers for Buffet CDO’s yielding double what T-Bills are selling for? He’d be printing money.
January 22, 2008 at 3:50 PM #141176Ozzie
ParticipantJumbo’s will come down. First I believe you’ll see Fed Funds rates sub 3% in the next 60 days. Someone will figure out how to create a model for different areas to determine the risk/reward ratio, the likelihood for future property declines, and get a big institution to guarantee it.
If I was Warren Buffet, I’d be setting up direct lending banks in California, New York/NJ and maybe Mass. I’d only offer Jumbo’s to owner/occupied individuals with FICO’s over 700, 20% equity (with appraised values from appraisers that work for me), and documented assets of at least 10% of the home’s value in cash. No brokers. He could get his Geico guys to run the operation. I’d service the loans for a year and then collateralize them. Do you think there would be any buyers for Buffet CDO’s yielding double what T-Bills are selling for? He’d be printing money.
January 22, 2008 at 3:50 PM #141203Ozzie
ParticipantJumbo’s will come down. First I believe you’ll see Fed Funds rates sub 3% in the next 60 days. Someone will figure out how to create a model for different areas to determine the risk/reward ratio, the likelihood for future property declines, and get a big institution to guarantee it.
If I was Warren Buffet, I’d be setting up direct lending banks in California, New York/NJ and maybe Mass. I’d only offer Jumbo’s to owner/occupied individuals with FICO’s over 700, 20% equity (with appraised values from appraisers that work for me), and documented assets of at least 10% of the home’s value in cash. No brokers. He could get his Geico guys to run the operation. I’d service the loans for a year and then collateralize them. Do you think there would be any buyers for Buffet CDO’s yielding double what T-Bills are selling for? He’d be printing money.
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