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bigtrouble
ParticipantDon’t worry….baby boomers are not going to retire.
They can’t.
That’s also why real wages will not increase. No more upward mobility. We all stay in the same place,fellow debt slaves…or maybe debt ‘hos, tricked out at 18 by that pimp Sallie Mae…
September 27, 2007 at 8:32 AM in reply to: VOTE: state of the bubble collapse, Worse, OR Better than your expectation? #86082ParticipantI expected the credit crunch to start in January of this year, not August. The banks knew it was coming late 2005 (first payment defaults in the pipeline get spotted pretty quick.)
September 12, 2007 at 10:14 AM in reply to: August numbers out. No impact of the credit crunch in San Diego… #84276ParticipantBanks are not holding on to their REOs.
Banks are outsourcing their REOs to companies who try to make a target of closing a certain percentage of their volume a month by selling to large investors and auction houses.
Large investors buy in bulk. They are the ones who are looking at entire portfolio, and selling off the ones right now that can turn a profit. The ones that don’t look immediately profitable, well, those are the ones you work, and work hard. Someone will take a lot of little properties they can sell immediately in non-bubble areas mixed in with a few toxic high value loans with big losses in high value areas. Its the way you deal with risk in portfolio management.
Banks aren’t dumb. Its just the sales guys have been getting more ear time than the risk guys the last few years. Times have changed, and so have the profit opportunites.
September 4, 2007 at 4:23 PM in reply to: cannot wait anymore, buying a condo now instead of a house at 4S Ranch, and wait to buy a bigger house later? #83339Participant1989 vs 2007
I’d take 1989…why?
Can’t refinance to a lower purchase price.
ParticipantNobody likes Nostrodamus’s…
ParticipantNobody likes Nostrodamus’s…
ParticipantNobody likes Nostrodamus’s…
Participant“We’re all in the same boat. Some have suites, some have balconies, some have oceanviews and some have inside cabins.
If the ship sinks, we’re all going down. ;-)”
This is obviously when liquidity becomes a liability. 🙂
You know, some of us didn’t take that cruise.
Enjoy your suite on the Titanic. I’ll keep my little patch o’ dry land – who care’s who ‘owns’ it anyway?
Participant“We’re all in the same boat. Some have suites, some have balconies, some have oceanviews and some have inside cabins.
If the ship sinks, we’re all going down. ;-)”
This is obviously when liquidity becomes a liability. 🙂
You know, some of us didn’t take that cruise.
Enjoy your suite on the Titanic. I’ll keep my little patch o’ dry land – who care’s who ‘owns’ it anyway?
Participant“We’re all in the same boat. Some have suites, some have balconies, some have oceanviews and some have inside cabins.
If the ship sinks, we’re all going down. ;-)”
This is obviously when liquidity becomes a liability. 🙂
You know, some of us didn’t take that cruise.
Enjoy your suite on the Titanic. I’ll keep my little patch o’ dry land – who care’s who ‘owns’ it anyway?
ParticipantThey will not file for bankruptcy. They are way too big–I mean, 49% of it is still owned by GM. They will downsize and prune away, but still have a lot of capital to play with. If all you are worried about it is GMAC going out of business, then you are completely safe.
Also, GMAC mortgage is the prime unit, and while ResCap is integreting all their businesses, they still separate their prime paper from the subprime when it comes to loss serverity.
ParticipantGMAC owns Homecomings Financial, the number 4 subprime in the nation.
They closed the San Diego subprime servicing site and layed off 400 employees in Jan.
They have delayed their earnings report–hmmm, wonder why?
GMAC finalized the sale of 51% stake in the company to hedge-fund Cerebus in Dec. of 06.
Yesterday, they announced (internally) the firing of Dave Applegate, President of Residential Finance Group (RFG), and Chief Operating Officer of GMAC ResCap, and Eric Scholtz, head of ResCap Capital markets.
So, they have HUGE exposure, big layoffs, and are firing their COO and head of Capital Markets, to be replaced by head managers of the hedge fund that bought them. You make the call…..
ParticipantI remember a couple of years ago, Pres. Bush stated that evolution was a “theory” and that creationism should be taught along side natural selection in schools. The next day he gave a big speech talking about the threat of avian flu mutating very quickly, and soon would include human to human transfer.
If you don’t get the absolute stupidity of this inconsistency, there is no way you will be able to judge the scientific evidence of ANYTHING.
February 20, 2007 at 2:27 PM in reply to: Federal bank bailout may not be that big during this downturn? #45842ParticipantDefinitely. And think about it this way: a foreclosure sale is still a sale. They isolate the business unit responsible for the losses (subprime), if the ltv is out of whack, foreclose, sell it to someone else (market price not loan value) and offer a discount if they finance through your company. With the tightening of lending standards, your buyer will have to have better credit. You have just recycled bad paper into good paper, and the losses are isolated to a separate expendable unit.
And these clauses are in almost all payment option ARMS. IF the LTV gets above 110% or 125%, they can automatically readjust. And they will if it makes financial sense to them to do so.
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