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jmf

Banks Significantly Tightened Real-estate Loan Standards

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to bad when you can´t sell the crap to the secondary market........... this will be another catalyst for lower prices and a further slowdown in the us economy that is highly addicted/dependent on the access to credit.......and there is nothing fed can do......

and here is the quote of the day from justin lenhard via itulip http://*******.com/ywkn4c

Justin Lahart, who's been ripping the cover off the ball one column after another for months, has the best answer to our question posed yesterday about why the markets are not discounting the way they used to. Much as consumer confidence is no longer a measure of consumers' future employment and wage expectations but is instead a measure of consumers' expectations of future access to credit, the stock market is now an indicator of the market's expectations of future access to credit to finance new deals

cartoontighteningwx6.jpg

56% of banks tightening standards for subprime mortgages

15% of banks tightening standards for prime mortgages: Fed

46% of banks tightening standards for exotic mortgages: Fed

At least 38% of banks tightening mortgage lending standards

credittigtheningzj9.gif

Standards for commercial and industrial loans were little changed in the first quarter, the Fed report shows. Loan terms were easier at 7.5% of banks surveyed and tighter at 4%. About a fifth of the banks said demand for commercial and industrial loans was weaker.

>watch for the commercial standarts to tighten also in the near future... (and i hope that we see the same in the lbo/clo credit market.

http://immobilienblasen.blogspot.com/

Edited by jmf

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http://immobilienblasen.blogspot.com/2007/...of-2002-on.html

here is sobering stuff from the corporate borrowing front.....

`Fantasy Land'

More than half of the junk bonds sold this year were used to pay for leveraged buyouts and mergers and acquisitions, according to Barclays Capital. Money is so easy to come by that for the first time some investors agreed to let borrowers choose to make interest payments in cash or in additional bonds. ``This is fantasy land for corporate treasurers,'' .... They ``are smiling like Cheshire cats'' and borrowing conditions ``entice them to increase their leverage.''

Univision Communications Inc., the Los Angeles-based Spanish-language broadcaster, and real estate broker Realogy Corp. of Parsippany, New Jersey, financed their takeovers in part with so-called toggle bonds that give the issuer the option to pay interest with more bonds. ..........

looks like another innovation to keep the game alive..... the end is near

http://immobilienblasen.blogspot.com/

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more fallout.......

U.S. Foreclosure Filings Rise 62% in April

U.S. foreclosure filings jumped 62 percent in April from a year earlier and the number of households falling behind on mortgages probably will climb further this year as home prices fall and lending standards rise, RealtyTrac Inc. said.

California, Florida and Ohio led the U.S. in filings. There were 147,708 default notices, auction sale letters and bank repossessions last month as declining prices made it harder to refinance, particularly for borrowers with poor or limited credit, the Irvine, California-based seller of foreclosure data said today. April's total compares with 91,168 filings a year earlier.

http://immobilienblasen.blogspot.com/2007/...2-in-april.html

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thanks for the kind words

thank god that wall streets, ben etc tells us every day that the problems are contained and there is no spreading/threath to the rest of the economy...... :-)

dow, sp500 etc at new highs......(despite wmt and hd warnings..........)

spin, spin.....

Edited by jmf

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to bad when you can´t sell the crap to the secondary market........... this will be another catalyst for lower prices and a further slowdown in the us economy that is highly addicted/dependent on the access to credit.......and there is nothing fed can do......

and here is the quote of the day from justin lenhard via itulip http://*******.com/ywkn4c

Justin Lahart, who's been ripping the cover off the ball one column after another for months, has the best answer to our question posed yesterday about why the markets are not discounting the way they used to. Much as consumer confidence is no longer a measure of consumers' future employment and wage expectations but is instead a measure of consumers' expectations of future access to credit, the stock market is now an indicator of the market's expectations of future access to credit to finance new deals

cartoontighteningwx6.jpg

56% of banks tightening standards for subprime mortgages

15% of banks tightening standards for prime mortgages: Fed

46% of banks tightening standards for exotic mortgages: Fed

At least 38% of banks tightening mortgage lending standards

credittigtheningzj9.gif

Standards for commercial and industrial loans were little changed in the first quarter, the Fed report shows. Loan terms were easier at 7.5% of banks surveyed and tighter at 4%. About a fifth of the banks said demand for commercial and industrial loans was weaker.

>watch for the commercial standarts to tighten also in the near future... (and i hope that we see the same in the lbo/clo credit market.

http://immobilienblasen.blogspot.com/

I like the credit tightening plot. Gives a quite clear picture about what happened back in 89 and what is happening now.

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