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MrB

60 Minutes - Mortgage Meltdown

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Yeah I saw this quite a while ago. I regularly post the reset chart as it illustrates how far we have to go. I imagine our banks bought quite a few of those mortgages as MBS's and therefore will take more losses.

Edited by self

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so wait another year before we can get stock and housing bargains? And then if it doesn't happen what is the next event we will have to wait for?

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Well worth a watch.

Although is specific to US market.

Were our banks offering similar mortgage products to the ones refered to here like the ARM and ALTE mortgages?

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so wait another year before we can get stock and housing bargains? And then if it doesn't happen what is the next event we will have to wait for?

Yeh - after all nothing exciting has happened over the last 18 months, has it!?

(the biggest falls in house prices in history aside)

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Yeh - after all nothing exciting has happened over the last 18 months, has it!?

(the biggest falls in house prices in history aside)

the falls seem poxy to me. I still can't afford what I'm looking for. Wake me up when I can!

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Well worth a watch.

Although is specific to US market.

Were our banks offering similar mortgage products to the ones refered to here like the ARM and ALTE mortgages?

I have emailed and wrote to the Conservatives about this issue, not so sure they are even aware of it. In other words, as soon as the GE is over, we can expect a second bad wave of debt from the states, this time, with rising interest rates, taxes and limited bailout options.

My investment portfolio is being put together at present, taking a week to research individual companies, looking explicitly ad debt on their books vs assets. Some will do well out of this, IE the cash-rich ones.

If I were proper hardcore, I would short the shares that wont do well, but I want one last confirmation that I have identified the correct failure mode; if the market collapses again, I will be using my vulture fund to buy in. I believe Equities will be the next big thing, with property falling as a result of a lack of cashflow in the economy.

I have talking about this a LOT over at MSE, boy there is a shitload of denial still out there....

http://forums.moneysavingexpert.com/showth...+arm&page=1

:lol::lol::lol::lol:

Edited by mbga9pgf

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Guest KingCharles1st

I was thinking this earlier while walking along the high street, and shaking my head after looking in a few EA windows. I mean, like 205K for a 2 bed apartment over a drive-through into a courtyard in some pokey out the way village where nothing happens. WAKE UP!!!

The place is worth 75K tops, and as I keep saying, a 1 bed is worth 45-50k tops.

Wake up Westminster- GET WITH THE PROGRAMMMMM!!!!!!!

SORT IT OUT YOU WA NKERS!!!!

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I was thinking this earlier while walking along the high street, and shaking my head after looking in a few EA windows. I mean, like 205K for a 2 bed apartment over a drive-through into a courtyard in some pokey out the way village where nothing happens. WAKE UP!!!

The place is worth 75K tops, and as I keep saying, a 1 bed is worth 45-50k tops.

Wake up Westminster- GET WITH THE PROGRAMMMMM!!!!!!!

SORT IT OUT YOU WA NKERS!!!!

Agree with you 100%!! :P

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Yeh - after all nothing exciting has happened over the last 18 months, has it!?

(the biggest falls in house prices in history aside)

According to

http://www.financemarkets.co.uk/2008/02/25...gage-borrowers/

175,000 people took out the together mortgage for 125% of the properties value before the product was withdrawn by Northern Rock. I wonder how many of these are having trouble?

http://www.guardian.co.uk/business/2009/ma...k-loans-bailout

Northern Rock lent £800m on its Together mortgage - allowing borrowers up to 125% of the value of their homes - from the time of its emergency support from the Bank of England in September 2007 until it was on the brink of public ownership. While the terms for the controversial loans were tightened, the product still accounts for 50% of the lender's arrears and 75% of repossessions.

Looks worse if you bang a few zeros on it - £800,000,000

Edited by Yorkshire Lad

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According to

175,000 people took out the together mortgage for 125% of the properties value before the product was withdrawn by Northern Rock. I wonder how many of these are having trouble?

im confident the final number having trouble repaying the above loans will be around 30 million or as they are otherwise known "The UK Taxpayer"

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If u can't be arsed to watch the 10 minutes ....go to 3.29 and look at the reset graph.

2009 is the lull before the real calamity in 2010/2011.

http://www.cbsnews.com/video/watch/?id=466...ated;photovideo

This was shot in December 08 so about 6 months out of date!! Since then both stock markets have risen strongly so they don't seem to worried about it.

Old news nothing to see here move along now!!

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This was shot in December 08 so about 6 months out of date!! Since then both stock markets have risen strongly so they don't seem to worried about it.

Old news nothing to see here move along now!!

Ah yes! The booming stock market was a great indicator of things to come in 2007 wasn't it? :rolleyes:

Did your mother ever drop you on your head?

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Ah yes! The booming stock market was a great indicator of things to come in 2007 wasn't it? :rolleyes:

Did your mother ever drop you on your head?

Indeed. And the fact that it was recorded 6 months ago some how means the issue has become obsolete, like all those resets suddenly fail to exist!?!

A village is missing it's idiot tonight I think.

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Does anybody know how alt-a and option arms are performing against predicted default rates?

I'd love to know that. I think there is an updated chart somewhere of the one which they show in this video. The key line in the video for me is that people were even defaulting on their TEASER rate before the rate even reset. That to me shows how bad this is.

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Mish has lot of info and links in this piece from 31 May 2009

http://globaleconomicanalysis.blogspot.com...in-to-come.html

It is packed with graphs and charts.

While it is colourful the picture it paints is not pretty.

His conclusion:

"Institutions Have Been Able to Raise Capital to Mostly Keep Up With Writedowns, But This Will Likely Not Continue.

What can't be paid back will be defaulted on. Consumers with no job have no chance of paying back those debts. Many others who could, won't (because it is in their best interest to walk away). The Alt-A and Option ARM defaults are going to be massive."

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Mish has lot of info and links in this piece from 31 May 2009

http://globaleconomicanalysis.blogspot.com...in-to-come.html

It is packed with graphs and charts.

While it is colourful the picture it paints is not pretty.

His conclusion:

"Institutions Have Been Able to Raise Capital to Mostly Keep Up With Writedowns, But This Will Likely Not Continue.

What can't be paid back will be defaulted on. Consumers with no job have no chance of paying back those debts. Many others who could, won't (because it is in their best interest to walk away). The Alt-A and Option ARM defaults are going to be massive."

That is a great article. I urge everyone to read it. Some pretty terrifying charts on there. I don't know if I'm allowed to copy and paste his stuff onto here due to copyright though. Check it out.

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Wake up Westminster- GET WITH THE PROGRAMMMMM!!!!!!!

SORT IT OUT YOU WA NKERS!!!!

Once Westminster realise they can no longer milk the tax-payer for refurbs, fitouts, plasma TV's, second home allowances, flipping... they will reek terrible revenge on the mortgage holders of the UK the likes of which have not been seen since Sissy Spacek went for that first prom dance.

Second home owners & BTL about to be burned ALIVE !

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Mish has lot of info and links in this piece from 31 May 2009

http://globaleconomicanalysis.blogspot.com...in-to-come.html

It is packed with graphs and charts.

While it is colourful the picture it paints is not pretty.

His conclusion:

"Institutions Have Been Able to Raise Capital to Mostly Keep Up With Writedowns, But This Will Likely Not Continue.

What can't be paid back will be defaulted on. Consumers with no job have no chance of paying back those debts. Many others who could, won't (because it is in their best interest to walk away). The Alt-A and Option ARM defaults are going to be massive."

Seriously good link. It will take a while to digest it all.

http://moremortgagemeltdown.com/download/p...gage_crisis.pdf

Edited by linuxgeek

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