Housing Bubble Bursting?

[Randolph Kinney]

Everybody is taking losses on mortgages - more fun to come

Fannie Mae Nine-Month Profit Falls 57 Percent, Reports Third-Quarter Loss

Fannie Mae, the biggest source of money for U.S. home loans, said profit in the first nine months of the year fell 57 percent as mortgage defaults fueled an increase in credit losses. The shares dropped.

``Fannie Mae is becoming another poster child for the problem you see with Countrywide Financial, Washington Mutual and any of the firms with a good chunk of mortgage business,'' said Michael Mullaney, who manages $10 billion at Fiduciary Trust Co. in Boston. ``You just don't know anymore where you're going to get a negative surprise that comes out of the woodwork.''

 

[Randolph Kinney]

Watch the money flow - going for low risk, not high yield

Treasuries Rise on Speculation Subprime Losses to Prompt Fed to Cut Rates

Treasuries rose, pushing yields of the shortest-term securities to the lowest since August, on speculation losses tied to subprime mortgages will lead the Federal Reserve to cut interest rates a third time this year.

``There's so much money now that's seeking to get away from risk and toward riskless securities,'' said Walter Burke, a fixed-income technical strategist in New York at Merrill Lynch & Co., one of 21 primary dealers that trade directly with the Fed. ``People are buying Treasuries like bananas as soon as stocks go down. I've never seen such a tight correlation.''

 

[Randolph Kinney]

Inflation - problem? Not according to CPI, but look at imports

U.S. Import Prices Increase 1.8 Percent, Most in 17 Months, Spurred by Oil

Prices for goods imported into the U.S. jumped more than forecast in October as oil prices neared a record, confirming the Federal Reserve's view that inflation remains a danger.

Prices of goods from China rose for a sixth straight month.

``A weak dollar, higher energy prices, higher agricultural prices, and higher commodity prices are all pushing imported inflation up sharply,'' John Ryding, chief U.S. economist at Bear Stearns Cos. in New York, said in a note to clients. ``We do not think the domestic inflation consequences of the weaker dollar can be easily dismissed.''

 

[Riick]

^^^ Countrywide Critics Call For Change

CW Insiders Agree:
~~~~~~~~~~~~~~~~~~~~~~ We didn't sell our Stock because we're deserting this stinking ship, we just needed some pocket change.

.

 

[Greg Bell]

See Avatar..........

 

[Randolph Kinney]

Credit card debt goes delinquent - higher charge offs

Capital One showing signs of being hit by the housing slump

Capital One charge-offs, delinquencies rise
Housing market problems hitting credit card biz more than expected

SAN FRANCISCO (MarketWatch) -- Capital One Financial Corp. reported Friday an increase in loan charge-offs and delinquencies in October in a sign that the credit-card giant is feeling the effects of the housing slump.

As delinquencies on subprime mortgages surged this year, there were initially few signs that similar problems were leaking into the credit card industry. However, that may be changing now amid evidence that consumers loaded up on credit card debt to make up for a loss in the purchasing power they once wielded by refinancing mortgages during the real estate boom.

 

[MARK JOLLIFF]

Mark,
I am glad this subject finally got to the press and exposed banks dirty tricks to the publice but are you saying that you just found it out why big banks like WaMu or others started using AMCs? Why do you think WaMU and the rest of them all the sudden started to dump their honest appraisers and chose to send their appraisal assignments to AMCs? It was not for saving money, AMC costs them more money; it was not even for quick turn around time. It was for shifting their liabilities to unregulated agencies and they thougt they could getaway with that and all of us knew it and discussed it here many times but could't do anything about it.

Moh, I must shamefully admit that I never even thought of the liability issue and I never read any of the other post's on the topic. I guess I'm late to the party!! I was under the assumption it was for cost cutting. I'm putting myself on a ten minute time out and would appreciate it if you gave me a pass this one time for totally missing the boat. I was serious though when I said "Holy ****". The ramifications are staggering!

 

[Terrel L. Shields]

http://money.cnn.com/2007/11/07/mag...ttwo.fortune/index.htm?postversion=2007110808

Washington Mutual's situation is particularly worrisome, ... Bad loan problems are spreading out of subprime mortgages and into other types of loans. If Cuomo's allegations are true, WaMu could be holding mortgages on properties that are worth a lot less than its balance sheet says. And investors are fleeing plenty other bank stocks because they don't trust banks' balance sheets.
If those are the two main issues, credit crunch fears won't ease until there is good evidence that bad loans have peaked for all types of credit - from credit card loans to non-junk mortgages to commercial real estate loans. Banks are only beginning to talk about problems in these nonsubprime areas, so it could be several quarters before it's clear how affected they will be.
Investors need to begin to feel that banks have revealed all the losses on their balance sheets

I cannot see how the Fed would suggest that housing will bottom out in early 08..

 

[Dee Dee]

Private Mortgage Insurers Dragged Down

http://biz.yahoo.com/ap/071110/mortgage_insurers.html

MILWAUKEE (AP) -- As the housing market crumbles, homeowners are worried about mortgage payments and sellers are worried about slumping prices -- but the companies that insure their loans are worrying about their very survival in the face of billions of dollars in claims.

 

[Randolph Kinney]

Home values are falling, banks are writing off billions in loans, foreclosures are still increasing, mortgage insurers are showing losses, Wall Street investment bankers are writing off billions of mortgage backed securities and derivatives ... was there a bubble in the housing market?:new_all_coholic: