“In yet another example of synchronicity, Jim Hamilton provides a chart from Peter Hooper that illustrates why the housing market is in the doldrums: securitized credit has all but vanished. This topic came up in the previous post as a explanation of why the real estate market is coming to look like a war zone.”
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“ALMOST one in 10 Australian households is suffering from mortgage stress, with the figure predicted to come close to 1 million homes within three months.”
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Kathy Costine, Rae Boylan and Nelson Luria will be managing directors at RBC Capital Markets, while James LaVigne will be a director.
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“Citi has made huge pricing changes to their government products which make these supposed “affordabilty” products much more expensive. No matter how much Congress wants to make FHA bail out America the simple truths of risk management will continue to confound them.”
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European stocks and U.S. index fell as concern deepened that more bank writedowns and slowing economic growth will curb earnings for financial firms, broadcasters and technology companies.
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“Southern California plaintiffs push for Chapter 11 bankruptcy for Estate Financial”
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“As you can see, this part of the collapse is still in its beginnings as option arms (also known as EXPLODING arms, as when they do reset they explode higher in payment requirements) and Alt A loans are due to reset. These categories are still borrowers of dubious borrowing qualifications, and have NO INCENTIVE to stay in their homes when negative equity SWAMPS the future prospects of their purchases. Housing prices are declining at a year over year rate of 24% in the US and are now declining throughout the real estate markets in Europe as well.”
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Moody’s Investors Service may downgrade Morgan Stanley, the ratings agency said Friday, citing big trading losses recently that have undermined confidence in the investment bank’s risk management.
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“What they have in common is all have recently predicted a massive unraveling of the US financial ’system’ within a few weeks. It is not as if this prediction or being on the verge of a meltdown is something new. The financial system has come apart several times in the past year but the Fed has always stepped in with something that has caused the markets to calm down (on the surface) and stocks to rally. Bonds, however, have never responded quite in the manner of stock market participants …”
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