[cr]

Agreed. I read it and at first the looser standards they talk about sound like they would be even easier to exploit.

Then I got to this part and it hit me:

“Real Estate: companies can revalue certain assets to fair value.”

Notice it didn’t say de-value, but re-value.

Initially you’d think to mark down underperforming RE assets, but what’s to stop companies from hoarding say, foreclosed homes, “revaluing” them at a “fair” value (what determines fair) and booking gains in an asset worth less then the loan against it?

I’m no accountant so I’m probably missing many other benefits but it doesn’t sound like it would prevent much of the debacle we’ve seen.

[cr]

Agreed. I read it and at first the looser standards they talk about sound like they would be even easier to exploit.

Then I got to this part and it hit me:

“Real Estate: companies can revalue certain assets to fair value.”

Notice it didn’t say de-value, but re-value.

Initially you’d think to mark down underperforming RE assets, but what’s to stop companies from hoarding say, foreclosed homes, “revaluing” them at a “fair” value (what determines fair) and booking gains in an asset worth less then the loan against it?

I’m no accountant so I’m probably missing many other benefits but it doesn’t sound like it would prevent much of the debacle we’ve seen.

[cr]

Agreed. I read it and at first the looser standards they talk about sound like they would be even easier to exploit.

Then I got to this part and it hit me:

“Real Estate: companies can revalue certain assets to fair value.”

Notice it didn’t say de-value, but re-value.

Initially you’d think to mark down underperforming RE assets, but what’s to stop companies from hoarding say, foreclosed homes, “revaluing” them at a “fair” value (what determines fair) and booking gains in an asset worth less then the loan against it?

I’m no accountant so I’m probably missing many other benefits but it doesn’t sound like it would prevent much of the debacle we’ve seen.

[cr]

Agreed. I read it and at first the looser standards they talk about sound like they would be even easier to exploit.

Then I got to this part and it hit me:

“Real Estate: companies can revalue certain assets to fair value.”

Notice it didn’t say de-value, but re-value.

Initially you’d think to mark down underperforming RE assets, but what’s to stop companies from hoarding say, foreclosed homes, “revaluing” them at a “fair” value (what determines fair) and booking gains in an asset worth less then the loan against it?

I’m no accountant so I’m probably missing many other benefits but it doesn’t sound like it would prevent much of the debacle we’ve seen.

[cr]

I actually like her.

Sure it’s a shameless ploy by the Republicans to gain Hillary supporters, but welcome to politics.

But again, I like her. She’s so new to politics she’s not corrupted by it. Her parents were teachers, she actually has real values, and she can probably relate better to the average American than 99.9% of any other brainwashed, over-lobbied, disconnected pompous fat-cat politician.

I’d actually rather see her be president than McCain, Obama or Biden.

[cr]

I actually like her.

Sure it’s a shameless ploy by the Republicans to gain Hillary supporters, but welcome to politics.

But again, I like her. She’s so new to politics she’s not corrupted by it. Her parents were teachers, she actually has real values, and she can probably relate better to the average American than 99.9% of any other brainwashed, over-lobbied, disconnected pompous fat-cat politician.

I’d actually rather see her be president than McCain, Obama or Biden.

[cr]

I actually like her.

Sure it’s a shameless ploy by the Republicans to gain Hillary supporters, but welcome to politics.

But again, I like her. She’s so new to politics she’s not corrupted by it. Her parents were teachers, she actually has real values, and she can probably relate better to the average American than 99.9% of any other brainwashed, over-lobbied, disconnected pompous fat-cat politician.

I’d actually rather see her be president than McCain, Obama or Biden.

[cr]

I actually like her.

Sure it’s a shameless ploy by the Republicans to gain Hillary supporters, but welcome to politics.

But again, I like her. She’s so new to politics she’s not corrupted by it. Her parents were teachers, she actually has real values, and she can probably relate better to the average American than 99.9% of any other brainwashed, over-lobbied, disconnected pompous fat-cat politician.

I’d actually rather see her be president than McCain, Obama or Biden.

[cr]

I actually like her.

Sure it’s a shameless ploy by the Republicans to gain Hillary supporters, but welcome to politics.

But again, I like her. She’s so new to politics she’s not corrupted by it. Her parents were teachers, she actually has real values, and she can probably relate better to the average American than 99.9% of any other brainwashed, over-lobbied, disconnected pompous fat-cat politician.

I’d actually rather see her be president than McCain, Obama or Biden.

[cr]

Haven’t read it yet but if it means you can no longer book and report the entire interest income from a 30 year loan that you just sold to the next biggest sucker of an investor before you even receive a payment then it’s a good thing.

[cr]

Haven’t read it yet but if it means you can no longer book and report the entire interest income from a 30 year loan that you just sold to the next biggest sucker of an investor before you even receive a payment then it’s a good thing.

[cr]

Haven’t read it yet but if it means you can no longer book and report the entire interest income from a 30 year loan that you just sold to the next biggest sucker of an investor before you even receive a payment then it’s a good thing.

[cr]

Haven’t read it yet but if it means you can no longer book and report the entire interest income from a 30 year loan that you just sold to the next biggest sucker of an investor before you even receive a payment then it’s a good thing.

[cr]

Haven’t read it yet but if it means you can no longer book and report the entire interest income from a 30 year loan that you just sold to the next biggest sucker of an investor before you even receive a payment then it’s a good thing.

[cr]

Tanta at calculated risk said it well:

“Alt-A is sort of a weird mirror-image of subprime lending. If subprime was traditionally about borrowers with good capacity and collateral but bad credit history, Alt-A was about borrowers with a good credit history but pretty iffy capacity and collateral. That is to say, while subprime makes some amount of sense, Alt-A never made any sense. It is a child of the bubble.”

As a result fraud was rampant and it turns out, Prime, really isn’t.

http://www.housingwire.com/2008/08/28/prime-foreclosure-starts-surge-past-subprime-in-july/

[Author]

Posts