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bsrsharma
Participant“I don’t see a light here at the moment,” Mozilo told CNBC
That is strange too. CEO of the largest mortgage lender expressing utter pessimism.
bsrsharma
ParticipantVery good question. I am also not seeing stories of people being driven out of homes, increase in shelter occupancy, evidence of pain etc.,
bsrsharma
ParticipantVery good question. I am also not seeing stories of people being driven out of homes, increase in shelter occupancy, evidence of pain etc.,
bsrsharma
ParticipantVery good question. I am also not seeing stories of people being driven out of homes, increase in shelter occupancy, evidence of pain etc.,
bsrsharma
ParticipantI watched Angelo Mozilo being interviewed (by Maria Bartiromo) this morning on CNBC. He was quite good, gave direct answers, sounded smart.
Key takeaways:
1. He can’t say for certain CFC will not end up in bankruptcy. But he hedged somewhat by saying, the probability is not higher than, say, 6 months or year back.
2. This is important – He said he has no clue as to what is happening in the credit market. He felt the $ amount in subprimes is too small to create this universal crisis of confidence in debt. He thinks the situation is serious but does not believe there is some way to fix things. He says he has not seen anything like this (loss of trust) in 55 years of lending business.
3. This is a very interesting comment: “Real estate always takes us into a Recession or out of a Recession”. The corollary seems to be he is certain that a Recession is inevitable.
Watch it: http://www.cnbc.com/id/15840232?video=481763309&play=1
Somewhat scary to hear a usually optimistic guy sound so gloomy – not just about CFC’s future – but about US economy.
bsrsharma
ParticipantI watched Angelo Mozilo being interviewed (by Maria Bartiromo) this morning on CNBC. He was quite good, gave direct answers, sounded smart.
Key takeaways:
1. He can’t say for certain CFC will not end up in bankruptcy. But he hedged somewhat by saying, the probability is not higher than, say, 6 months or year back.
2. This is important – He said he has no clue as to what is happening in the credit market. He felt the $ amount in subprimes is too small to create this universal crisis of confidence in debt. He thinks the situation is serious but does not believe there is some way to fix things. He says he has not seen anything like this (loss of trust) in 55 years of lending business.
3. This is a very interesting comment: “Real estate always takes us into a Recession or out of a Recession”. The corollary seems to be he is certain that a Recession is inevitable.
Watch it: http://www.cnbc.com/id/15840232?video=481763309&play=1
Somewhat scary to hear a usually optimistic guy sound so gloomy – not just about CFC’s future – but about US economy.
bsrsharma
ParticipantI watched Angelo Mozilo being interviewed (by Maria Bartiromo) this morning on CNBC. He was quite good, gave direct answers, sounded smart.
Key takeaways:
1. He can’t say for certain CFC will not end up in bankruptcy. But he hedged somewhat by saying, the probability is not higher than, say, 6 months or year back.
2. This is important – He said he has no clue as to what is happening in the credit market. He felt the $ amount in subprimes is too small to create this universal crisis of confidence in debt. He thinks the situation is serious but does not believe there is some way to fix things. He says he has not seen anything like this (loss of trust) in 55 years of lending business.
3. This is a very interesting comment: “Real estate always takes us into a Recession or out of a Recession”. The corollary seems to be he is certain that a Recession is inevitable.
Watch it: http://www.cnbc.com/id/15840232?video=481763309&play=1
Somewhat scary to hear a usually optimistic guy sound so gloomy – not just about CFC’s future – but about US economy.
bsrsharma
ParticipantMy suggestion: Create a lot of shelters for the newly homeless. It will be a very good investment in educating them about living within means.
bsrsharma
ParticipantMy suggestion: Create a lot of shelters for the newly homeless. It will be a very good investment in educating them about living within means.
bsrsharma
ParticipantMy suggestion: Create a lot of shelters for the newly homeless. It will be a very good investment in educating them about living within means.
August 23, 2007 at 10:55 AM in reply to: OMG!!! … Bill Gross: Bush needs to rescue homeowners #79765bsrsharma
ParticipantWhat do you think of a bailout plan like this:
Anyone can sell a house to a (new US Govt funded) RTC for, say, $100,000 max and $100/sqft max etc.,. Govt will convert them into public housing (through HUD) or sell when market improves. This provides a buyer of last resort when prices plummet.
August 23, 2007 at 10:55 AM in reply to: OMG!!! … Bill Gross: Bush needs to rescue homeowners #79894bsrsharma
ParticipantWhat do you think of a bailout plan like this:
Anyone can sell a house to a (new US Govt funded) RTC for, say, $100,000 max and $100/sqft max etc.,. Govt will convert them into public housing (through HUD) or sell when market improves. This provides a buyer of last resort when prices plummet.
August 23, 2007 at 10:55 AM in reply to: OMG!!! … Bill Gross: Bush needs to rescue homeowners #79916bsrsharma
ParticipantWhat do you think of a bailout plan like this:
Anyone can sell a house to a (new US Govt funded) RTC for, say, $100,000 max and $100/sqft max etc.,. Govt will convert them into public housing (through HUD) or sell when market improves. This provides a buyer of last resort when prices plummet.
bsrsharma
ParticipantThis was posted on UT:
By EW on 08/22/2007
I unfortunately worked for a subprime lender for a short time (6 mos) before I decided to become an appraiser. Things are slower now, but I'm able to keep going OK because there aren't nearly as many appraisers and it's pretty difficult to become licensed.
Some things I took away from the experience: Every Tom Dick & Harry got into it- was a modern day gold rush for a time. Many only had high school education and did quite well, but spent nearly every dime they got. There are surely a lot of early BMW lease returns going on and most of these people will never make this kind of money again unless they go back to school and get a real education.
From my point of view, the whole subprime thing was mostly about taking advantage of unaware, uneducated, stupid, and lazy homeowners in a raging market. The ideal borrower would have a good amt of equity and a lot of debt, with low fico scores of course. We were trained to point out how their overall payments could be lowered by refinancing (paying off the mtg, cc debt, cars, etc), and they could also get cash out to enjoy life a little, go on that vacation you've been dreaming about, get a new car, etc. Never mind the fact that they ended up with a dangerous adjustable rate mtg which went back to 30 years in nearly every case, and just paid a whole bunch of fees to refi.
My questions are: Why didn't more people see this coming? Did homeowners think the market would magically increase by leaps & bounds from now to the end of time? Where were the finance media experts in all this and why didn't they warn homeowners?
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