Standard & Poor’s just drove a huge harpoon into the heart of the mortgage credit bubble,

[Bugs]

What a crackup. Now that a kid has blurted out that the Emporer has no clothes everyone is putting on their 20-20 hindsight goggles.

[Bugs]

What a crackup. Now that a kid has blurted out that the Emporer has no clothes everyone is putting on their 20-20 hindsight goggles.

[PD]

I can hardly wait to turn on my computer these days as there seems to be a steady stream of big news. Most people have no idea of the macro forces at play. All they see are current list prices and think that is the whole story.

[PD]

I can hardly wait to turn on my computer these days as there seems to be a steady stream of big news. Most people have no idea of the macro forces at play. All they see are current list prices and think that is the whole story.

[JWM in SD]

Exactly PD. Anyone still in denial about where the credit market is headed?? Really???

Credit Contraction and Deflation…don’t say that you weren’t warned…numerous times.

[JWM in SD]

Exactly PD. Anyone still in denial about where the credit market is headed?? Really???

Credit Contraction and Deflation…don’t say that you weren’t warned…numerous times.

[Drew]

Ahem…

“Housing & economy doing great…shut down this site!”

[Drew]

Ahem…

“Housing & economy doing great…shut down this site!”

[lendingbubblecontinues]

I think news like this might actually shut some of the more optimistic posters up for a while….for example- all of the MBA and ASF position papers in the world ain’t gonna mean shit once the credit markets blow up due to the massive unwinding of derivatives. Put a fork in it!

[lendingbubblecontinues]

I think news like this might actually shut some of the more optimistic posters up for a while….for example- all of the MBA and ASF position papers in the world ain’t gonna mean shit once the credit markets blow up due to the massive unwinding of derivatives. Put a fork in it!

[lniles]

How can this be? 🙂

Bernanke, Kudlow, scruffy dog and other wise analysts said everything’s ok, it’s contained, subprime wouldn’t affect other markets!!!

“We believe the effect of the troubles in the subprime sector on the broader housing market will be limited and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.” -Bernanke

http://www.cbsnews.com/stories/2007/05/17/business/main2821980.shtml
http://www.cnbc.com/id/17600184

Yet what have we here?

Wall Street gets smacked
http://money.cnn.com/2007/07/10/markets/markets_530/index.htm?postversion=2007071017

After appearing to subside last week, the recent mess in the subprime mortgage sector re-emerged Tuesday after the credit rating agency Standard & Poor’s said it will cut $12 billion of subprime-related debt, saying it expected more delinquent and defaulted U.S. home loans.

After the market close, fellow credit rating agency Moody’s cut its rating for 399 residential mortgage-backed securities, which were backed by subprime loans.

Shares of investment banks and other financial firms slipped on the news as shares of J.P. Morgan Chase (down $1.28 to $47.51, Charts, Fortune 500) and Goldman Sachs (down $6.22 to $217.08, Charts, Fortune 500) both fell nearly 3 percent. Bear Stearns (down $5.93 to $137.96, Charts, Fortune 500), which nearly faced a collapse last month of two hedge funds heavily invested in securities backed by subprime mortgages tumbled over 4 percent.

Subprime contagion?

http://money.cnn.com/2007/07/05/news/economy/subprime.fortune/index.htm

[lniles]

How can this be? 🙂

Bernanke, Kudlow, scruffy dog and other wise analysts said everything’s ok, it’s contained, subprime wouldn’t affect other markets!!!

“We believe the effect of the troubles in the subprime sector on the broader housing market will be limited and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.” -Bernanke

http://www.cbsnews.com/stories/2007/05/17/business/main2821980.shtml
http://www.cnbc.com/id/17600184

Yet what have we here?

Wall Street gets smacked
http://money.cnn.com/2007/07/10/markets/markets_530/index.htm?postversion=2007071017

After appearing to subside last week, the recent mess in the subprime mortgage sector re-emerged Tuesday after the credit rating agency Standard & Poor’s said it will cut $12 billion of subprime-related debt, saying it expected more delinquent and defaulted U.S. home loans.

After the market close, fellow credit rating agency Moody’s cut its rating for 399 residential mortgage-backed securities, which were backed by subprime loans.

Shares of investment banks and other financial firms slipped on the news as shares of J.P. Morgan Chase (down $1.28 to $47.51, Charts, Fortune 500) and Goldman Sachs (down $6.22 to $217.08, Charts, Fortune 500) both fell nearly 3 percent. Bear Stearns (down $5.93 to $137.96, Charts, Fortune 500), which nearly faced a collapse last month of two hedge funds heavily invested in securities backed by subprime mortgages tumbled over 4 percent.

Subprime contagion?

http://money.cnn.com/2007/07/05/news/economy/subprime.fortune/index.htm

[Nancy_s soothsayer]

By gullible-gosh, there goes the pension fund. Can some pension manager reading this please start redeeming all those CMO’s, CDO’s and MBS, please? Same with those “alpha engines” full of synthetic derivatives, please? Hellerr…is anyone listening? We’re talking a lot of money at risk here.

[Nancy_s soothsayer]

By gullible-gosh, there goes the pension fund. Can some pension manager reading this please start redeeming all those CMO’s, CDO’s and MBS, please? Same with those “alpha engines” full of synthetic derivatives, please? Hellerr…is anyone listening? We’re talking a lot of money at risk here.

[JWM in SD]

Why do I get the impression that only a handful of regular posters get the significance of this?

[Author]

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