[Bubblesitter]

After rejecting Buffet’s offer today, the big Mortgage insurers MBIA, Ambac are now even closer to ratings downgrades and eventual insolvency.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAxVkU8yAycM&refer=home

Warren Buffet is a genius (an actual genius, not a satirical genius). His offer to Ambac, MBIA was widely portrayed as a “rescue”, but it is a calculated move to become the dominant Muni-bond insurer.

The bond insurers may in the end may be forced to do a deal like this, splitting their Mortgage securities and Muni-bond business.

In one year, Buffet will own nearly the entire Muni-bond insurance business. A very profitable, albeit slow growing business.

Bubblesitter

[Bubblesitter]

After rejecting Buffet’s offer today, the big Mortgage insurers MBIA, Ambac are now even closer to ratings downgrades and eventual insolvency.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAxVkU8yAycM&refer=home

Warren Buffet is a genius (an actual genius, not a satirical genius). His offer to Ambac, MBIA was widely portrayed as a “rescue”, but it is a calculated move to become the dominant Muni-bond insurer.

The bond insurers may in the end may be forced to do a deal like this, splitting their Mortgage securities and Muni-bond business.

In one year, Buffet will own nearly the entire Muni-bond insurance business. A very profitable, albeit slow growing business.

Bubblesitter

[Bubblesitter]

After rejecting Buffet’s offer today, the big Mortgage insurers MBIA, Ambac are now even closer to ratings downgrades and eventual insolvency.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAxVkU8yAycM&refer=home

Warren Buffet is a genius (an actual genius, not a satirical genius). His offer to Ambac, MBIA was widely portrayed as a “rescue”, but it is a calculated move to become the dominant Muni-bond insurer.

The bond insurers may in the end may be forced to do a deal like this, splitting their Mortgage securities and Muni-bond business.

In one year, Buffet will own nearly the entire Muni-bond insurance business. A very profitable, albeit slow growing business.

Bubblesitter

[Bubblesitter]

After rejecting Buffet’s offer today, the big Mortgage insurers MBIA, Ambac are now even closer to ratings downgrades and eventual insolvency.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAxVkU8yAycM&refer=home

Warren Buffet is a genius (an actual genius, not a satirical genius). His offer to Ambac, MBIA was widely portrayed as a “rescue”, but it is a calculated move to become the dominant Muni-bond insurer.

The bond insurers may in the end may be forced to do a deal like this, splitting their Mortgage securities and Muni-bond business.

In one year, Buffet will own nearly the entire Muni-bond insurance business. A very profitable, albeit slow growing business.

Bubblesitter

[Bubblesitter]

put their Keys in their mail…..

[Bubblesitter]

put their Keys in their mail…..

[Bubblesitter]

put their Keys in their mail…..

[Bubblesitter]

put their Keys in their mail…..

[Bubblesitter]

put their Keys in their mail…..

[Bubblesitter]

“Jingle mail” was a term that was probably coined in the 80s or earlier. During that housing downturn, underwater homeowners (with negative equity) would just put their in the mail to the bank and move out.

We are seeing a significant rise in owners just walking away.

This has huge implications on the housing downturn.

http://money.cnn.com/2008/02/06/real_estate/walking_away/index.htm?postversion=2008020714

“taking the inside out” is former owners trashing the house on the way out of their foreclosed house

[Bubblesitter]

“Jingle mail” was a term that was probably coined in the 80s or earlier. During that housing downturn, underwater homeowners (with negative equity) would just put their in the mail to the bank and move out.

We are seeing a significant rise in owners just walking away.

This has huge implications on the housing downturn.

http://money.cnn.com/2008/02/06/real_estate/walking_away/index.htm?postversion=2008020714

“taking the inside out” is former owners trashing the house on the way out of their foreclosed house

[Bubblesitter]

“Jingle mail” was a term that was probably coined in the 80s or earlier. During that housing downturn, underwater homeowners (with negative equity) would just put their in the mail to the bank and move out.

We are seeing a significant rise in owners just walking away.

This has huge implications on the housing downturn.

http://money.cnn.com/2008/02/06/real_estate/walking_away/index.htm?postversion=2008020714

“taking the inside out” is former owners trashing the house on the way out of their foreclosed house

[Bubblesitter]

“Jingle mail” was a term that was probably coined in the 80s or earlier. During that housing downturn, underwater homeowners (with negative equity) would just put their in the mail to the bank and move out.

We are seeing a significant rise in owners just walking away.

This has huge implications on the housing downturn.

http://money.cnn.com/2008/02/06/real_estate/walking_away/index.htm?postversion=2008020714

“taking the inside out” is former owners trashing the house on the way out of their foreclosed house

[Bubblesitter]

“Jingle mail” was a term that was probably coined in the 80s or earlier. During that housing downturn, underwater homeowners (with negative equity) would just put their in the mail to the bank and move out.

We are seeing a significant rise in owners just walking away.

This has huge implications on the housing downturn.

http://money.cnn.com/2008/02/06/real_estate/walking_away/index.htm?postversion=2008020714

“taking the inside out” is former owners trashing the house on the way out of their foreclosed house

[Bubblesitter]

Never thought I would here the term “jingle mail” being talked about so much again. It was a common term in the 80s.

The big worry among those in the finance circles is that “just walking away” will become socially acceptable. I personally don’t see a stigma.

If I was hopelessly underwater, knowing that housing prices are heading down and we’re going into recession, I would be very tempted to walk too!

This housing downturn may last 5 years, maybe even longer. The downturn last one in the 90s was at least 4 years. Most folks thing the peak around here in SD was late 2005/early 2006. We’re probably not gonna see any real housing appreciation for a long time.

By the time this whole housing bubble shakes out, you would have time to get your credit back up and buy your next house.

In America, entrepreneurs and investors take big risk and fail all the time. Sometimes you gotta take your losses. Walking away from mortgages may be the best financial decision for your family. Throwing good money at a depreciating asset is usually not a good thing.

Bubblesitter

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