Thursday, Jan 17, 2008
Next Domino
Reuters: Wealth may be next in line in US home crisis
Covers borrowers with good credit rating that have over extended or Mew'd
Posted by yoss @ 11:09 AM (270 views) Add Comment
4 Comments
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1. Icarus said...
So well-off people in posh houses are having mortgage problems. This is because sub-prime is everywhere - people in all income groups over-extended themselves to buy the most expensive properties they could in order to make maximum profit when house prices rose. The unfortunate thing about leverage (gambling with Other People's Money) is that it works in reverse.
2. lvmreader said...
The nomenclature "subprime" is similar to the spectrum of "party-girl"
Married Well - Trophy Wife - High Maintenance Girlfriend - Party Girl - Escort - Call Girl - Prostitute
It is all the same stuff, just depends on what people want to call it.
As Fitch, Moodys and S&P perform downgrades on CDOs, more apparently prime loans will actually be subprime.
Everything is prime until it's not.
If MBIA and AMBAC downgrades occur before Warren Buffet's new monoline is operational, we will have a real meltdown.
3. techieman said...
Ivmreader - read today that a couple of Bermudian Reinsurers took a right down:
"Bermudian firms PartnerRe and RenaissanceRe have announced combined writedowns of over $200mn from their stakes in financial guarantee reinsurer Channel Re.
The companies revealed that they were writing off their investments in their fellow islander in New York Stock Exchange announcements following close of trading yesterday (16 January).
RenRe said it would take a non-operating charge of $126.7mn related to a 100 percent writedown of its investment in ChannelRe "
I'll let you guess who Channel Re offer financial Guarantees to!!! ;-)
4. techieman said...
right down should have been right down!!!:-) not write down - or perhaps both.