Reducing Principal

[JWM in SD]

JWM in SD

Okay, so do you guys understand the implication of this??????

Helicopter Ben just told the banks and investors to go F themselves, they are not getting a bailout by the FED.

No Monetization for you Mr Banker!!!!!

To all the fools here thinking that the FED was going to bailout the Housing Market and save your HPA…..SUCKERS!!!!!

[JWM in SD]

JWM in SD
Oh yeah, and here is the money quote from old Ben:
“A recent estimate based on subprime mortgages foreclosed in the fourth quarter of 2007 indicated that total losses exceeded 50 percent of the principal balance, with legal, sales, and maintenance expenses alone amounting to more than 10 percent of principal. With the time period between the last mortgage payment and REO liquidation lengthening in recent months, this loss rate will likely grow even larger. Moreover, as the time to liquidation increases, the uncertainty about the losses increases as well.”

50%……50%. You really still think that areas like Carmel Valley and 4S and RSF are going to weather this storm??? Wait until the second wave or resets hit and we all become “SUBPRIME”.

[JWM in SD]

JWM in SD
Oh yeah, and here is the money quote from old Ben:
“A recent estimate based on subprime mortgages foreclosed in the fourth quarter of 2007 indicated that total losses exceeded 50 percent of the principal balance, with legal, sales, and maintenance expenses alone amounting to more than 10 percent of principal. With the time period between the last mortgage payment and REO liquidation lengthening in recent months, this loss rate will likely grow even larger. Moreover, as the time to liquidation increases, the uncertainty about the losses increases as well.”

50%……50%. You really still think that areas like Carmel Valley and 4S and RSF are going to weather this storm??? Wait until the second wave or resets hit and we all become “SUBPRIME”.

[JWM in SD]

JWM in SD
Oh yeah, and here is the money quote from old Ben:
“A recent estimate based on subprime mortgages foreclosed in the fourth quarter of 2007 indicated that total losses exceeded 50 percent of the principal balance, with legal, sales, and maintenance expenses alone amounting to more than 10 percent of principal. With the time period between the last mortgage payment and REO liquidation lengthening in recent months, this loss rate will likely grow even larger. Moreover, as the time to liquidation increases, the uncertainty about the losses increases as well.”

50%……50%. You really still think that areas like Carmel Valley and 4S and RSF are going to weather this storm??? Wait until the second wave or resets hit and we all become “SUBPRIME”.

[JWM in SD]

JWM in SD
Oh yeah, and here is the money quote from old Ben:
“A recent estimate based on subprime mortgages foreclosed in the fourth quarter of 2007 indicated that total losses exceeded 50 percent of the principal balance, with legal, sales, and maintenance expenses alone amounting to more than 10 percent of principal. With the time period between the last mortgage payment and REO liquidation lengthening in recent months, this loss rate will likely grow even larger. Moreover, as the time to liquidation increases, the uncertainty about the losses increases as well.”

50%……50%. You really still think that areas like Carmel Valley and 4S and RSF are going to weather this storm??? Wait until the second wave or resets hit and we all become “SUBPRIME”.

[JWM in SD]

JWM in SD
Oh yeah, and here is the money quote from old Ben:
“A recent estimate based on subprime mortgages foreclosed in the fourth quarter of 2007 indicated that total losses exceeded 50 percent of the principal balance, with legal, sales, and maintenance expenses alone amounting to more than 10 percent of principal. With the time period between the last mortgage payment and REO liquidation lengthening in recent months, this loss rate will likely grow even larger. Moreover, as the time to liquidation increases, the uncertainty about the losses increases as well.”

50%……50%. You really still think that areas like Carmel Valley and 4S and RSF are going to weather this storm??? Wait until the second wave or resets hit and we all become “SUBPRIME”.

[vagabondo]

As a taxpayer, I applaud the fact that BB is implying that the market (banks) should resolve their own problems. As Paulson said today, there is the incentive.

As an investor/shareholder, I agree that at the end on the day, minimizing losses is desired. If reducing principle pans out to cost the least, do it.

I am curious though. I find it somewhat hard to believe that reducing principle is going to significantly reduce the number of foreclosures. Given the level of the “average” persons debt and tightened lending standards, I would guess that most of those in trouble are facing financial issues on a number of fronts.

[vagabondo]

As a taxpayer, I applaud the fact that BB is implying that the market (banks) should resolve their own problems. As Paulson said today, there is the incentive.

As an investor/shareholder, I agree that at the end on the day, minimizing losses is desired. If reducing principle pans out to cost the least, do it.

I am curious though. I find it somewhat hard to believe that reducing principle is going to significantly reduce the number of foreclosures. Given the level of the “average” persons debt and tightened lending standards, I would guess that most of those in trouble are facing financial issues on a number of fronts.

[vagabondo]

As a taxpayer, I applaud the fact that BB is implying that the market (banks) should resolve their own problems. As Paulson said today, there is the incentive.

As an investor/shareholder, I agree that at the end on the day, minimizing losses is desired. If reducing principle pans out to cost the least, do it.

I am curious though. I find it somewhat hard to believe that reducing principle is going to significantly reduce the number of foreclosures. Given the level of the “average” persons debt and tightened lending standards, I would guess that most of those in trouble are facing financial issues on a number of fronts.

[vagabondo]

As a taxpayer, I applaud the fact that BB is implying that the market (banks) should resolve their own problems. As Paulson said today, there is the incentive.

As an investor/shareholder, I agree that at the end on the day, minimizing losses is desired. If reducing principle pans out to cost the least, do it.

I am curious though. I find it somewhat hard to believe that reducing principle is going to significantly reduce the number of foreclosures. Given the level of the “average” persons debt and tightened lending standards, I would guess that most of those in trouble are facing financial issues on a number of fronts.

[vagabondo]

As a taxpayer, I applaud the fact that BB is implying that the market (banks) should resolve their own problems. As Paulson said today, there is the incentive.

As an investor/shareholder, I agree that at the end on the day, minimizing losses is desired. If reducing principle pans out to cost the least, do it.

I am curious though. I find it somewhat hard to believe that reducing principle is going to significantly reduce the number of foreclosures. Given the level of the “average” persons debt and tightened lending standards, I would guess that most of those in trouble are facing financial issues on a number of fronts.

[bubble_contagion]

I just called US Bank and explained that my car is not worth tha same as new. They checked the Kelly Blue book and agreed to adjust the principal on the loan to it’s net present value. My payments are now almost half. If you or anybody you know could benefit from a similar arrangement call the bank, they are literaly giving money away.

This is what B.B. is telling the banks to do with home loans. Yeah right.

[bubble_contagion]

I just called US Bank and explained that my car is not worth tha same as new. They checked the Kelly Blue book and agreed to adjust the principal on the loan to it’s net present value. My payments are now almost half. If you or anybody you know could benefit from a similar arrangement call the bank, they are literaly giving money away.

This is what B.B. is telling the banks to do with home loans. Yeah right.

[bubble_contagion]

I just called US Bank and explained that my car is not worth tha same as new. They checked the Kelly Blue book and agreed to adjust the principal on the loan to it’s net present value. My payments are now almost half. If you or anybody you know could benefit from a similar arrangement call the bank, they are literaly giving money away.

This is what B.B. is telling the banks to do with home loans. Yeah right.

[bubble_contagion]

I just called US Bank and explained that my car is not worth tha same as new. They checked the Kelly Blue book and agreed to adjust the principal on the loan to it’s net present value. My payments are now almost half. If you or anybody you know could benefit from a similar arrangement call the bank, they are literaly giving money away.

This is what B.B. is telling the banks to do with home loans. Yeah right.

[Author]

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