renterbob Posted September 26, 2008 Share Posted September 26, 2008 Scary stuff and expertly anaylsed: Compared to the size of the Alt-A, Pay Option ARM, Second Mortgage and Jumbo Prime universes, Subprime is miniscule. With prices down so much in such a short period of time, most that bought, refinanced with cash out, or put a second mortgage on their property since 2002-03 in these ‘higher’ paper grades suddenly find themselves stuck in their homes without the ability to refinance or sell. http://mrmortgage.ml-implode.com/2008/09/2...ont-go-too-far/ Quote Link to comment Share on other sites More sharing options...
scuuzeme Posted September 26, 2008 Share Posted September 26, 2008 sounds familiar, no? Quote Link to comment Share on other sites More sharing options...
renterbob Posted September 28, 2008 Author Share Posted September 28, 2008 sounds familiar, no? Haven't we bought this yet? Surely the 700 billion will be enough? Surely we'll be ok? Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted September 28, 2008 Share Posted September 28, 2008 Jumbo prime? Does that come with double triple cheese? Quote Link to comment Share on other sites More sharing options...
renterbob Posted September 28, 2008 Author Share Posted September 28, 2008 Jumbo prime? Does that come with double triple cheese? No. Cheese costs an extra 10 billion. Lets say the Fed gets 7 billion, that's enough to save 12 million homeowners if they owe 60k. Not alot. But what about the ones who owe 550k? Quote Link to comment Share on other sites More sharing options...
Steppenpig Posted September 28, 2008 Share Posted September 28, 2008 There are a bit over 100 million households in the US. That USD700bn is less than USD7000 each. They must be losing that in price falls every few months. I realise that doesn't immediately translate into bank losses, but I've got a feeling that 700bn isn't going to last long. Quote Link to comment Share on other sites More sharing options...
newbee Posted September 28, 2008 Share Posted September 28, 2008 There are a bit over 100 million households in the US. That USD700bn is less than USD7000 each. They must be losing that in price falls every few months. I realise that doesn't immediately translate into bank losses, but I've got a feeling that 700bn isn't going to last long. Looks like 1/2 that now. (Reuters) - The following is a statement issued by U.S. House of Representatives Speaker Nancy Pelosi's office on changes to the Bush administration's $700 billion financial rescue plan request. Congressional leaders conducted a marathon negotiating session on Saturday before announcing they had a broad outline of a deal. Here is the statement issued early on Sunday: Significant bipartisan work has built consensus around dramatic improvements to the original Bush-Paulson plan to stabilize American financial markets -- including cutting in half the Administration's initial request for $700 billion and requiring Congressional review for any future commitment of taxpayers' funds. If the government loses money, the financial industry will pay back the taxpayers http://www.reuters.com/article/topNews/idU...ndChannel=10112 Quote Link to comment Share on other sites More sharing options...
crash2006 Posted September 28, 2008 Share Posted September 28, 2008 Looks like 1/2 that now.(Reuters) - The following is a statement issued by U.S. House of Representatives Speaker Nancy Pelosi's office on changes to the Bush administration's $700 billion financial rescue plan request. Congressional leaders conducted a marathon negotiating session on Saturday before announcing they had a broad outline of a deal. Here is the statement issued early on Sunday: Significant bipartisan work has built consensus around dramatic improvements to the original Bush-Paulson plan to stabilize American financial markets -- including cutting in half the Administration's initial request for $700 billion and requiring Congressional review for any future commitment of taxpayers' funds. If the government loses money, the financial industry will pay back the taxpayers http://www.reuters.com/article/topNews/idU...ndChannel=10112 haha how are they going to pay it back if they go bust. Quote Link to comment Share on other sites More sharing options...
renterbob Posted September 28, 2008 Author Share Posted September 28, 2008 haha how are they going to pay it back if they go bust. You is crazy! Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted September 28, 2008 Share Posted September 28, 2008 this is very relevant to our remortgage industry. Those who took out a 3 year fixed are not only in for a shock with higher rates when they come off, but unless they are left with at least 20% equity (after their new house price corrected valuation) will have to stay with the variable rate from their original lender. If you only had perhaps 30% equity last year you're likely to have none inside the next twelve mnoths, that's gonna decimate the secured loans and remortgage industry even further than it is already... Quote Link to comment Share on other sites More sharing options...
oracle Posted September 28, 2008 Share Posted September 28, 2008 (edited) Jumbo prime? Does that come with double triple cheese? I think the name ALT-A says it all,in a phonetic way. that is after all where most sacrificial offerings are made is it not?? Edited September 28, 2008 by oracle Quote Link to comment Share on other sites More sharing options...
Guest KingCharles1st Posted September 28, 2008 Share Posted September 28, 2008 So lets say we have a company director- and maybe his partner too, both were making a killion on some sort of "move it on" business. The music stops, the business stops, cash flow stops, everything stops, including their ability to service their mortgage debt. As hinted at earlier in the thread- there could easily be ! mill from these two people alone. This is a financial disaster on two fronts- I see it now... Quote Link to comment Share on other sites More sharing options...
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