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permabear
Participant[quote=davelj]I’m curious… What does the “GSEs cracking down on delinquent loans” have to do with banks having to write down losses?[/quote]
Are you being serious? I ask because the chain of events is very straightforward. Delinquent, foreclosed, sold at auction, any loss written down. Once the property is marked to market, the loss is made real – hence the current “extend and pretend”. The GSEs are now explicitly saying that delinquent loans MUST be foreclosed and sold at auction w/i 60 days, rather than at the banks’ leisure as it has been so far.
Since foreclosures just hit a new record in August, AND the banks are already sitting on tons of delinquencies (squatters) that they have neglected to foreclose on, this new scrutiny could cause banks to suddenly have to write down large losses.
Participant[quote=davelj]I’m curious… What does the “GSEs cracking down on delinquent loans” have to do with banks having to write down losses?[/quote]
Are you being serious? I ask because the chain of events is very straightforward. Delinquent, foreclosed, sold at auction, any loss written down. Once the property is marked to market, the loss is made real – hence the current “extend and pretend”. The GSEs are now explicitly saying that delinquent loans MUST be foreclosed and sold at auction w/i 60 days, rather than at the banks’ leisure as it has been so far.
Since foreclosures just hit a new record in August, AND the banks are already sitting on tons of delinquencies (squatters) that they have neglected to foreclose on, this new scrutiny could cause banks to suddenly have to write down large losses.
ParticipantHere’s another link about the story:
[quote]The protesters were protesting various things; but mostly the perceived lack of promised government help to indebted householders.[/quote]
ParticipantHere’s another link about the story:
[quote]The protesters were protesting various things; but mostly the perceived lack of promised government help to indebted householders.[/quote]
ParticipantHere’s another link about the story:
[quote]The protesters were protesting various things; but mostly the perceived lack of promised government help to indebted householders.[/quote]
ParticipantHere’s another link about the story:
[quote]The protesters were protesting various things; but mostly the perceived lack of promised government help to indebted householders.[/quote]
ParticipantHere’s another link about the story:
[quote]The protesters were protesting various things; but mostly the perceived lack of promised government help to indebted householders.[/quote]
Participant[quote=walterwhite]I like the idea that cash will still be valuable relative to real estate just that I’m not confident of that, like there will be some govt scheme to dilute savings and somehow divert it to re[/quote]
Like, say, Quantitative Easing? That’s exactly what they’re doing right now. Cash is already being trashed.
Participant[quote=walterwhite]I like the idea that cash will still be valuable relative to real estate just that I’m not confident of that, like there will be some govt scheme to dilute savings and somehow divert it to re[/quote]
Like, say, Quantitative Easing? That’s exactly what they’re doing right now. Cash is already being trashed.
Participant[quote=walterwhite]I like the idea that cash will still be valuable relative to real estate just that I’m not confident of that, like there will be some govt scheme to dilute savings and somehow divert it to re[/quote]
Like, say, Quantitative Easing? That’s exactly what they’re doing right now. Cash is already being trashed.
Participant[quote=walterwhite]I like the idea that cash will still be valuable relative to real estate just that I’m not confident of that, like there will be some govt scheme to dilute savings and somehow divert it to re[/quote]
Like, say, Quantitative Easing? That’s exactly what they’re doing right now. Cash is already being trashed.
Participant[quote=walterwhite]I like the idea that cash will still be valuable relative to real estate just that I’m not confident of that, like there will be some govt scheme to dilute savings and somehow divert it to re[/quote]
Like, say, Quantitative Easing? That’s exactly what they’re doing right now. Cash is already being trashed.
ParticipantGold is a good hedge in either deflation or inflation:
http://dailyreckoning.com/gold-and-deflation-2/
The liquid, easy hedge is to buy the GLD ETF. Consider SLV (silver) as well. Both are going up-up-up so you may want to consider waiting for a pullback.
Some people will argue that physical gold is your only real hedge, as in the face of a stock market collapse, the ETF’s could decouple from the spot price of gold/silver and lose value. But, we’re talking massive collapse, like get your guns and canned foods. In all other cases, the ETF’s should track the spot price of gold/silver reasonably well.
http://seekingalpha.com/article/228517-gold-why-and-how-im-buying-right-now
ParticipantGold is a good hedge in either deflation or inflation:
http://dailyreckoning.com/gold-and-deflation-2/
The liquid, easy hedge is to buy the GLD ETF. Consider SLV (silver) as well. Both are going up-up-up so you may want to consider waiting for a pullback.
Some people will argue that physical gold is your only real hedge, as in the face of a stock market collapse, the ETF’s could decouple from the spot price of gold/silver and lose value. But, we’re talking massive collapse, like get your guns and canned foods. In all other cases, the ETF’s should track the spot price of gold/silver reasonably well.
http://seekingalpha.com/article/228517-gold-why-and-how-im-buying-right-now
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