Housing Bubble Bursting?

[Midwest Guy]

It was called the great bail out of the Savings and Loan industry. Mid 1980's!

has anybody ever tested FDIC insurance?

 

[concerned]

It was called the great bail out of the Savings and Loan industry. Mid 1980's!

So, it has been tested! Good to know. Thanks.

 

[Midwest Guy]

Account holders were saved, taxpayers were soaked, and Reagan was blamed for wrecking the economy & stock market!

So, it has been tested! Good to know. Thanks.

 

[concerned]

Account holders were saved, taxpayers were soaked

The problem would be that the account holders and the taxpayers overlap... The crooks' money most likely does not reside in the US.

 

[Randolph Kinney]

Has anyone one noticed a trend? It seems people are being laid off and mortgage units are being closed, shut down or sold. :new_all_coholic:

 

[Midwest Guy]

I might have seen one or two stories on that lately!

Has anyone one noticed a trend? It seems people are being laid off and mortgage units are being closed, shut down or sold. :new_all_coholic:

 

[Randolph Kinney]

I might have seen one or two stories on that lately!

I haven't posted everyone I have read. This has been going on for some time this year but lately the layoff numbers are large.

 

[Mr Rex]

Do you think it might be the great bubble bursting? Kinda feel like the kid from Charley Brown, waiting on the Great Pumpkin. Keep saying the sky is falling and eventually somebody gets hit by an asteroid. Everybody else will get up the next day and try to figure out what to do next, and maybe make pumpkin pie.

 

[Randolph Kinney]

German bank borrows directly from FED

Deutsche Bank at Fed window.

LONDON (MarketWatch) -- Deutsche Bank has tapped the discount window opened up by the U.S. Federal Reserve to ease the current credit squeeze, the Financial Times reported Monday on its Web site, citing people close to the situation. The report didn't say how much Deutsche took and the report quoted anonymous sources as saying the bank wanted to show support for the Fed move.

 

[Randolph Kinney]

Everyone is going to be sued over subprime

Subprime crisis may spark more D&O claims, broker says

SAN FRANCISCO (MarketWatch) -- The subprime mortgage crisis may generate more claims on so-called directors and officers insurance policies and similar coverage, according to one of the world's largest insurance brokers.

Higher interest rates and falling property prices have contributed to rising delinquencies on subprime mortgages, which are offered to less creditworthy borrowers. This, coupled with increased relaxation of underwriting standards, has led to the bankruptcy of more than 50 mortgage lenders, the collapse of hedge funds, increased regulatory scrutiny and ratings downgrades, Marsh, a unit of Marsh & McLennan, said on Monday.

The problems have also increased concerns about the potentially large exposure insurance companies and pension funds may have to securities backed by subprime mortgages, such as collateralized debt obligations (CDOs) and collateralized loan obligations (CLOs), the insurance broker added.

A slew of litigation could arise from these issues, Marsh warned.
Mortgage lenders could file lawsuits against banks after being forced into bankruptcy when they were asked to buy back loans. These suits could claim that the banks imposed improper margin calls and valued the lender's underlying collateral incorrectly, Marsh explained.