Tuesday, November 06, 2007

Stick a Fork in the Round Soapy Thing

4 comments:

Gwynster said...

He is right on the Short sale vs. foreclosure. As Agent pointed out, why dick around with the various lenders when it's just going to go REO anyways.

Diggin Deeper said...

How much further can this market fall?

Recent news includes Beazer's report that overall closings for their fiscal 4th qtr down 39%. Orders for new homes down 53% over same period. Beazer suspends dividend and cuts 25% of its work force.

Hovanian looks no better. YoY sales down 19%, contacts closed down 10% with cancellations running at an alarming 40%.

IndyMac (basically an Alt-A lending institution) posts it's first loss since 1998 losing over $203 Million and halving it's dividend. Michael Perry said in their news conferencee

"This credit market clearly has challenged us and tested us like we've never been tested before," Perry said. "We (also) got slammed by the complete closure of the non-GSE market."

Just how bad is Citi's exposure to the subprime problem? Market Watch reports that Citi owns $134 Billion of marked to model assets (ala exploding notes...the same assets that caused the August credit crunch) It's from this pool they will write down an additional $8-11 Billion. Keep your eye on this one as these toxic notes are failing at much higher rates then the 10% markdown the Citi's hoping for.

All in all, you might as well drive a semi over that "soapy thing" because we're going prime time on subprime.

Patient Renter said...

"How much further can this market fall?"

Ask Perfect Storm. He knows :)

paranoid renter said...

>>>>>
Ask Perfect Storm. He knows :)
>>>>>>>>

He says 50% decline which would be 30% of today's prices. If it gets there we will all be out of work.

May be a possibility by 2009. Election year is always good. :-)