Stocks crushed!! DOW Loses 777 points.
CNNMoney.com Monday, Sept. 29, 2008
Approximately $1.2 trillion in market value is gone after the House rejects the $700 billion bank bailout plan.
Uh Oh, The Credit Market Is Closed
2008-09-26 — blogspot.com
Welcome to the credit market, folks, it is officially closed.
After Lehman, Fannie Mae (FNM), Freddie Mac(FRE), AIG (AIG) and Washington Mutual (WM) debt and preferred holders have been unmercifully tossed under the bus so
Jamie Dimon can be given banks, do you really think many want to get in front of this train wreck.Me thinks not.
- For what it’s worth, I was just offered Wachovia (WB) 5.8% hybrids at $0.10 on the dollar, and I passed. A block of 30-year Wachovia paper just traded at $0.35 on the dollar. This is not preferred stock or hybrid, folks, this is subordinated debt.
- Washington Mutual sub paper? $0.01 on the dollar. This is what a credit rout looks like. And until this ship is righted, watch out. There are others trading similarly, like Morgan Stanley (MS) and, while I have no positions, it’s quite interesting to watch.
- So the few that can raise capital, like JPMorgan (JPM) and Goldman Sachs (GS) will survive, but many failures lie directly in front of us.
- Many regional banks are likely next.
Congress Pushes for Changes to Paulson Bailout Plan
2008-09-24 — bloomberg.com
Shelby told reporters yesterday that “I think the secretary now realizes that what he sent up is not just going to be rubber- stamped.”
Paulson said it would be a “grave mistake” to adopt Schumer’s proposal because it sent the wrong signal to the market and didn’t give Treasury “the tools to do the job.”
Leaders in both parties are working to shore up support for an effort to restore investor confidence. They also want to limit the risks for lawmakers who are being asked to vote on the biggest government intervention in the financial markets since the Great Depression, just six weeks before the elections.
Hyperinflation? – US dollar set to be major casualty of Hank Paulson’s bailout
The London Telegraph, Wed 24th of September
The US taxpayer bail-out of America’s banking sector is an event whose significance will reverberate for many years. What it means for free markets, for the way Western economies are run, for the prosperity of the world economy, must remain to be seen.
When Treasury Secretary Hank Paulson announced that the world’s biggest economy was about to embark on the world’s biggest bail-out for its financial sector, the first concern economists had was about the long-term prospects for the nation’s finances and its currency.
The Bailout – Paulson’s 0% Balance Transfer!
2008-09-24 — ml-implode.com
”But does this really solve our economic problems or make them worse? Ben and Hank are just offering us a low-rate balance transfer and higher credit limit on a new card. And boy are they getting a low introductory rate as yields on new Treasuries have fallen near 0%. Happy days are here again! We can keep borrowing, which means we can keep spending!”
AARP: Older Borrowers Behind on Mortgages Too
2008-09-19 — thetruthaboutmortgage.com
”So the AARP released a “first-of-its-kind” study that reveals older homeowners are not exempt from the ongoing mortgage crisis, significant considering the home is a nest egg for most.”
Will the Government Own Your Home?
2008-09-19 — cnbc.com
”Even the insiders I’m talking to, who know far more than I do, and who will be at the table, are answering my questions with: “Honestly, I’m just not sure.”
Privatizing Profits and Socializing Losses: How the Rich are Staying Rich
We pay taxes – and not on our “profits” mind you – We pay taxes on the money we use to buy food, fuel, clothes for our kids, and everything else we have to fork out to get by every month. They want Us to pay for it. When I think about that I forget to breath for a minute. The don’t just want us to pay for it, they are making us pay for it, and we will pay for generations to come.
Paulson and Bernanke are asking for a Blank Check to bailout people who had profited from the lax oversight and underwriting for years – and Pelosi Purse-strings has pledged to roll over on anything and push a bill through hastily, so they can all go home for a long vacation. Congress probably will not even read it. You know they are not writing it, they will leave that to the lawyers and Corporate Lobbyists – you know, the “Experts.”
Mr Mortgage – ‘The Quickening’
Get ready for the massive dumping of assets on our market, specifically residential properties. Lehman and Merrill are massively dumping inventory. Banks are in the liquidation mode. When this supply hits, it will drive down prices. Home sales ARE increasing, but so is inventory, and the rate of these increases do not offset each other. Expect more inventory and decreasing demand as loans become nearly impossible to obtain. This will only prolong the housing downturn. The foreclosure market is now the real estate market, and the banks are now the market makers.
The Paradigm Shift: “Too Big to Bail Out”
The Paradigm Shift: “Too Big to Bail Out”
Posted on September 15th, 2008 in Daily Mortgage/Housing News – The Real Story, Mr Mortgage’s Personal Opinions/Research
A paradigm shift back to ‘normal’ maybe occurring. Tonight sure looked like .gov is viewing these events as ’too big to bail out’. That is more than a shift, that is a full 180.
‘Maybe its different this time’ was perhaps the past two decades of free money and ultimate leverage. Now, its time for some harsh reality.
It looks like tonight that .gov decided to protect its balance sheet just like the banks have done for the past year. It is every bank for themselves. The Gov’t threw its balance sheet at the GSE’s just two weeks ago and here we sit. Nobody, and I mean nobody is prepared for this. And Nobody, and I mean nobody may be able to stop it.
And the Beginning of the end of Investment Banking
The meltdown
Lehman files for bankruptcy. Merrill is bought by Bank of America. The Fed and major banks expand lending. Anxiety lingers. Will WaMu get bought by JP Morgan? What are the implications of this shrinking market and what will it to do our lending capacity?
Here we go…This was bound to happen when the Feds said “no” to further bailouts.
Pick-a-payment loans turn poisonous
Defaults on option ARM mortgages are expected to double in the next two years, driving foreclosure rates even higher.
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