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bsrsharma
ParticipantWhen you say “kaput” or “BK” are you meaning Chapter 11 reorg or liquidation (Chapter 7)? If it is Chapter 11, it is no biggie; they can ride through the down turn. I think all builders will go through some sort of bankruptcy during the big bang – the question is can they reorganize or liquidate.
August 5, 2007 at 7:17 PM in reply to: Conversation with another friend in the “innards” of the mortgage industry #70582ParticipantWhat are his assessments on Countrywide, Bear Stearns and Wells Fargo? Survivable? Come out healthy?
August 5, 2007 at 7:17 PM in reply to: Conversation with another friend in the “innards” of the mortgage industry #70696ParticipantWhat are his assessments on Countrywide, Bear Stearns and Wells Fargo? Survivable? Come out healthy?
August 5, 2007 at 7:17 PM in reply to: Conversation with another friend in the “innards” of the mortgage industry #70704ParticipantWhat are his assessments on Countrywide, Bear Stearns and Wells Fargo? Survivable? Come out healthy?
ParticipantI don’t think anyone wishes for recessions. That is like wishing for hurricanes or earthquakes. But a hurricane is needed to equalize heat energy distribution in air & water (it is one giant convection current) and an earthquake is needed to relieve the tectonic stresses. Without the coming recession, there is no easy way to steer all the resources from home building activities to more productive use of capital. It is an economic equivalent of a hurricane or earthquake that redistributes capital to more efficient activities. Obviously, its intensity depends on the degree of imbalance (of capital distribution) in the system. In this case, that was very large – of the order of trillions of $ – the “convection currents” will be correspondingly large.
ParticipantI don’t think anyone wishes for recessions. That is like wishing for hurricanes or earthquakes. But a hurricane is needed to equalize heat energy distribution in air & water (it is one giant convection current) and an earthquake is needed to relieve the tectonic stresses. Without the coming recession, there is no easy way to steer all the resources from home building activities to more productive use of capital. It is an economic equivalent of a hurricane or earthquake that redistributes capital to more efficient activities. Obviously, its intensity depends on the degree of imbalance (of capital distribution) in the system. In this case, that was very large – of the order of trillions of $ – the “convection currents” will be correspondingly large.
ParticipantI don’t think anyone wishes for recessions. That is like wishing for hurricanes or earthquakes. But a hurricane is needed to equalize heat energy distribution in air & water (it is one giant convection current) and an earthquake is needed to relieve the tectonic stresses. Without the coming recession, there is no easy way to steer all the resources from home building activities to more productive use of capital. It is an economic equivalent of a hurricane or earthquake that redistributes capital to more efficient activities. Obviously, its intensity depends on the degree of imbalance (of capital distribution) in the system. In this case, that was very large – of the order of trillions of $ – the “convection currents” will be correspondingly large.
ParticipantTemekuT,
“House #1 was headed to REO land early in 2007. It was listed for 6 plus months at $679,000 and expired in February 2007”
That seems like a smoking gun – this transaction looks fraudulent. If the buyer walks soon, he has probably pocketed a good kick back. He helped the seller sell the property to Wells for $729,000! Deserves a kick back of $100K for the hard work.
ParticipantTemekuT,
“House #1 was headed to REO land early in 2007. It was listed for 6 plus months at $679,000 and expired in February 2007”
That seems like a smoking gun – this transaction looks fraudulent. If the buyer walks soon, he has probably pocketed a good kick back. He helped the seller sell the property to Wells for $729,000! Deserves a kick back of $100K for the hard work.
ParticipantI can think of a reason. Income from “underground”/”informal” economy. Eric Schlosser has estimated this to be about 10% of GDP. That would be more than a Trillion $. See
“Reefer Madness: Sex, Drugs, and Cheap Labor in the American Black Market” by Eric Schlosser
ParticipantI can think of a reason. Income from “underground”/”informal” economy. Eric Schlosser has estimated this to be about 10% of GDP. That would be more than a Trillion $. See
“Reefer Madness: Sex, Drugs, and Cheap Labor in the American Black Market” by Eric Schlosser
ParticipantQuote from an ex-AHM employee:
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Shawn Nuzzo, 31, a loan sales coordinator, said he sensed a shift in the market late last year.“Basically, the guy who puts no money down has a big incentive to walk away when interest rates go up,” Mr. Nuzzo said. “That started happening, and we made some adjustments. But obviously it was too little, too late.”
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ParticipantQuote from an ex-AHM employee:
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Shawn Nuzzo, 31, a loan sales coordinator, said he sensed a shift in the market late last year.“Basically, the guy who puts no money down has a big incentive to walk away when interest rates go up,” Mr. Nuzzo said. “That started happening, and we made some adjustments. But obviously it was too little, too late.”
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Participantradelow,
What is the “scam” in that? The investor holding the 2nd is like an unsecured creditor. How much worse is he compared to a credit card issuer? As long as he clearly understands, that he may lose his “investment”, I don’t see a problem. After all, that is why the interest rate is higher. It is like saying gambling should be made illegal because you mostly lose.
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