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Amercian Home Mortgage Short Of A Few Dollars

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"A lot of people are going to suffer," said Manhattan lawyer Dan Brecher. "It's not that they were lying -- a lot of people just believe their own baloney."

Coming to a UK mortgage provider near you.

Northern Rock anyone ? ;)

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Guest DissipatedYouthIsValuable
It couldn'y possibly happen here our lending rules are way to tight ;)

UK. Proper money. Queen's head. QUEEN. Not colonial green paper. Never happen here.

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http://www.newsday.com/business/ny-bzahm08...y-top-headlines

I was listening to a few experts on Bloomberg telly and they all agreed that this is a blip. It'll all be over in 3-6 months, apparently.

But don't bet the house on it.

"And Michael Strauss, the hard-driving entrepreneur who built American Home from a home-office operation into a top-10 mortgage bank, remaining its principal stakeholder throughout, lost $42.8 million in 20 minutes when the stock was traded on the New York Stock Exchange yesterday afternoon."

Geez, not bad for 20 minutes work!

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Someone said on here a few weeks ago in the last crash a lot of "sub prime" lenders in the uk disappeared.

When the effects are fully felt over here I expect that to happen again.

I agree with the previous poster and have been banging on for ages that Northern Rock is one of the lenders I see as most likely to fail. Any business that expands too quickly is susceptible to failure when the market turns.

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"And Michael Strauss, the hard-driving entrepreneur who built American Home from a home-office operation into a top-10 mortgage bank, remaining its principal stakeholder throughout, lost $42.8 million in 20 minutes when the stock was traded on the New York Stock Exchange yesterday afternoon."

Geez, not bad for 20 minutes work!

This guy must have lost 97% from May to now!! :o He founded this business. How could he be so thick? I guess the investment banks heavily rely on this sort of people to make their money.

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He founded this business. How could he be so thick?

Greed. All of it is about greed. From the rarified air of hedge funds to the thuggery of investment banking to the couple next door who think they're players because their house 'went up in value' enough to 'buy' another.

It's always and forever about greed: basic human nature.

It's funny how the UK press is saying things like prices 'could' fall by 20%.

Yeah, 20% is such a lot. Why that's about the total accumulated inflation of at least two months.

I don't think there will be many prices that fall more than 70%; but that's where I'd put the final uncle point for the worst affected. (We all know what they are; ex-council rat traps.) Better housing will hold more value but 50% is probably the median and the pundits will deny it all the way down.

Anyway, I wouldn't touch the market until it fell around 50%. I think it'll take a while to really get going but it will be swift this time, I think, once it's out of the traps. I don't see a long grind ahead.

The reality is that everything required for a massive crash is in place:A la Wile E. Coyote; it's already happening, it's just waiting for us to see it.

It's not about whether a crash will happen; it's about how long it takes them to see that it has already happened.

If you know anyone at all ready to buy; you should direct them to some proper information. I don't care about some multi-millionaire who lost 97 million of his 120 million fortune but I do care about people who are still 'climbing onto the ladder' as it disintegrates.

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Greed. All of it is about greed. From the rarified air of hedge funds to the thuggery of investment banking to the couple next door who think they're players because their house 'went up in value' enough to 'buy' another.

It's always and forever about greed: basic human nature.

It's funny how the UK press is saying things like prices 'could' fall by 20%.

Yeah, 20% is such a lot. Why that's about the total accumulated inflation of at least two months.

I don't think there will be many prices that fall more than 70%; but that's where I'd put the final uncle point for the worst affected. (We all know what they are; ex-council rat traps.) Better housing will hold more value but 50% is probably the median and the pundits will deny it all the way down.

Anyway, I wouldn't touch the market until it fell around 50%. I think it'll take a while to really get going but it will be swift this time, I think, once it's out of the traps. I don't see a long grind ahead.

The reality is that everything required for a massive crash is in place:A la Wile E. Coyote; it's already happening, it's just waiting for us to see it.

It's not about whether a crash will happen; it's about how long it takes them to see that it has already happened.

If you know anyone at all ready to buy; you should direct them to some proper information. I don't care about some multi-millionaire who lost 97 million of his 120 million fortune but I do care about people who are still 'climbing onto the ladder' as it disintegrates.

You can't say anything to anyone about to climb on the ladder. They think you're nuts.

I was at my niece's house-warming a couple of weeks ago. Her husband has just mortgaged himself up to and above his eyeballs to buy their new house. I was asked when I was going to buy again.

I said 'not until the housing market has crashed and burned'. Because I called the last crash correctly and STRed then, my views are not regarded as those of an old eccentric. My two nephews who were there, both with mega-mortgages - looked a bit worried. I said to reassure them 'you'll be okay, you're young and buying for the long term - as long as you can keep paying the mortgage you'll be okay - I just hope IRs don't go to 10% at any time' And they both chimed in and said 'but they wouldn't let interest rates go that high!' and I said 'you're labouring under the illusion that the government controls the money markets. They don't. When a bank has your head in a noose they'll tighten it whenever they want.

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wern't a blip for poor b*******ds who owned this stock.. $32 to $10 then $1. Couldnt fall any further cos it was delisted :lol:

CHART

That's a beautiful chart. Isn't that stock 'undervalued' now? Historically, the company traded 1,000% higher; time to buy?

We're going to see a lot more of those ski slopes very soon.

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That's a beautiful chart. Isn't that stock 'undervalued' now? Historically, the company traded 1,000% higher; time to buy?

We're going to see a lot more of those ski slopes very soon.

The chart does not even tell the whole truth as it stops at 10. But after a pause the stock traded at 1.04. Furthermore, the chart is logarithmic so the plunge looks softened. Reality is much harsher!

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No use trying to convince buyers to hold off and save being burnt. They won't listen. The ads in the media and PR boys from the money markets are too seductive. Your voice counts for near to zilch.

The best you can hope for is that they hear what you say , then delay their purchase for a few weeks. In between, the negative news may reach them (except if they watch GMTV and read the Sun/Mirror :lol: ) and they may decide to wait.....

My own recent experience is a friend who bought in a good area 2 months ago. I said he was mad, as the house might be worth 20% less in 12-18months and his interest rate would be around 8% (or higher). He said he was buying for the long term and for his family. Fair enough. But was that any reason to extend his mortgage for another 25years ? He will be making repayments until he is 65 :o

As he started paying a mortgage on his first house (3 houses ago) when he was in his mid-20's, that's effectively a 40yr mortgage. Mad, mad, mad........... :(

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