Blowing the Lid Off the Mortgage Industry
From the monthly archives:
If you’re new here, you may want to subscribe to my RSS feed. Thanks for visiting!GMAC, the financing division of GMC, posted a $2.48 billion dollar loss for the quarter driven by losses tied to its ResCap residential mortgage group and auto lease write downs. ResCap which has been posting massive losses since the [...]
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The Federal Reserve announced changes to its emergency lending window for financial institutions today. The changes extend the repayment period for the loans and the duration of the program among others. The lending window allows banks to borrow from the Fed for short periods of time while putting up securities (such as mortgage backed securities, [...]
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I’d be on the lookout for more of these types of suits in the future as real estate sales and their role in the bubble come more in to foucs. We’ve put a lot of time and energy in on the mortgage side of the game; but there is plenty of blame/shame to heap on [...]
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If this graph (from the Big Picture) doesn’t say it all keep reading…
The home prices tracked by the S&P Case-Shiller index continue to drop with all 20 cities tracked in the study posting losses for May (the most recent month tracked).
From S&P:
Data through May 2008, released today by Standard & Poor’s for its S&P/Case-Shiller(1) Home [...]
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The Massachusetts Educational Financing Authority is unable to grant loans to college students this year as it is unable to secure financing due to the condition of the capital markets. More than 40,000 college students will be locked out of financing for their college education due to the beating taken on Wall Street.
This is where [...]
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From Slate, via The Big Picture. Pretty good, but I’d put the firemen in a big shadow of China…
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Interesting piece in the New York Times about the downfall of IndyMac Bank and the history that led to its demise. The title, The Downfall of a California Dreamer, paves the way for this look back; but unfortunately it’s romanticized version of events led by a chairman with a dream comes up much too short [...]
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Looks like Merrill Lynch wasn’t too comfy with its capital position as the firm announced it’s intent to raise $8.5 billion. The impetus for this was a CDO sale that netted out a nice $5.7 billion write down. Obviously the credit crunch continues unabated. Anyone who continues to repeat that the worst is over is [...]
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My posting last week was relatively light due to a hectic business travel schedule Monday-Wednesday and then the Inman Real Estate Connect Conference in San Francisco. It was great to be participating in the conference, but the big highlight for me was meeting CR of Calculated Risk and Merlin Mann both in person. Connect had [...]
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A great quote in the New York Times by way of Naked Capitalism from one of my favorite authors, pundits, quants Nassim Taleb about those trying to make predictions in the current market:
?I cannot find a single convincing argument that tells me that astrologers won?t do better than economists,? Mr. [Nassim Nicholas] Taleb said last [...]
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