Mortgage quagmire II

[DJofSD]

And another domino topples - MBIA.

From a Reuters report:
MBIA, the world's largest bond insurer, said on its Web site late Wednesday that it has exposure to $30.6 billion in complex mortgage securities that it insures, an amount that eclipses its entire net worth.

[chickenhead]

I read this guy every week, I thought he makes some pertinant points:

http://hussmanfunds.com/wmc/wmc071217.htm



As for the Fed itself, it's a great gift to offer people hope, but a great disservice to offer people false hope, and I think that's what the Fed is doing. What's going on in the mortgage market is not a crisis of confidence that we can talk ourselves out of – it's a problem of structural insolvency, where many borrowers literally don't have the means to service their debt over the long-term, because many of them were counting on rising home prices over the short-term. By acting as if a few billion in repos will substantially change this equation, the Fed is raising hopes, and setting the markets and the economy up for disappointment that will be far worse as a result. Bernanke would be better off admitting that the Fed has no chance of providing meaningful “liquidity” when the Federal government is issuing Treasuries at ten times the rate the Fed can absorb them. At that point, Americans would see better that the resources we need to invest, compete and become a financially sound nation are being hoarded by the Federal government and sent up in flames.

[DJofSD]

I read this guy every week, I thought he makes some pertinant points:


Agreed.

Seems his bottom line at the moment is gold/precious metals.

[riskman]

The economic losses are gigantic and will grow. The trickle of bad news is going to become a flood over the next year. It will wear down the resistance of perma-bulls, who believe that the Federal Reserve can save the day and save the stock market. All over the world, the repercussions of bad loans, carry-trade leverage, and relatively tight money are going to be felt.

This has been a huge pool of investment errors. This has sucked in the best and the brightest people on earth, those who allocate capital. They trusted Alan Greenspan. They trusted artificially low interest rates. They trusted fiat money. That trust has been betrayed, as always. But this time, it has been betrayed on a scale that puts the world's banking system at risk.

The bailouts have only just begun.

[skate]

Have fun:)

[PaceAdvantage]

And yet, with all this terrible mortgage and banking news, the markets continue to keep their heads above water....odd....

[DRIVEWAY]

We all know that housing and the stock market can only go up over the long run.

The blip is to be caught in that 25 year window when it goes down 90%,

Keep buying so others can sell.

Thank You

[ddog]

The market movers are as detached from the reality of the avg person as Gates net worth is to mine.

[DJofSD]

The equity markets are not the economy.

[chickenhead]

when all is said and done, the time to buy is when the blood is ankle deep. Nibble nibble. Next year. People are only nervous right now...I haven't seen enough people FREAKING out.

Although the CEO from Sallie Mae the other day...he freaked a few people out.

[PaceAdvantage]

How about this for a freak out?

A CNBC reported commented that sources told him Merrill Lynch (MER 53.63, -1.10) may have $7 billion in new write-downs, in addition to Merrill's previous $8.4 billion write-down. He also noted Merrill has Collateral Debt Obligations (CDOs) from ACA Capital, which had its credit rating downgraded yesterday to CCC from AAA.
Meanwhile, a Fox-Pitt analyst predicted $8.6 billion in additional write-downs in the fourth quarter for Merrill.

[chickenhead]

that was pretty good, I must admit.

[riskman]

Morgan Stanley reported the first quarterly loss in its 72 year history.
The company took a 9.4 billion charge on sub-prime-linked investments for the fourth quarter, bringing its cumulative charges for subprime mortgages to 10.8 billion.. Morgan Stanley said it would sell a 5 billion stake to a Chinese investment fund to shore up its capitol.

[riskman]

Morgan Stanley reported the first quarterly loss in its 72 year history.
The company took a 9.4 billion charge on sub-prime-linked investments for the fourth quarter, bringing its cumulative charges for subprime mortgages to 10.8 billion.. Morgan Stanley said it would sell a 5 billion stake to a Chinese investment fund to shore up its capitol.


note- the loss is 3.5 billion for the 4th qtr.. It said its remaining sub prime exposure was 1.8 billion.

[Gibbon]

The market movers are as detached from the reality of the avg person as Gates net worth is to mine. Bill pays salary to tens of thousands of employees worldwide. Gate's financial health is vitally important to many. Answer me this: would you rather work for a rich or poor boss? Wonder who deposits checks on schedule? Wonder who has a decent health care plan? Paid vacations?

Stock markets are an essential component to overall health of nations. Just ask communist China. Contrast Cuba or Oil rich yet poor Venezuela. Contrast commodity poor yet wealth Hong Kong.






__________________________
Anyone who thinks there's safety in numbers hasn't looked at the stock market pages. Irene Peter

[skate]

MBIA, the world's largest bond insurer, said on its Web site late Wednesday that it has exposure to $30.6 billion in complex mortgage securities that it insures, an amount that eclipses its entire net worth.


Is that Good or Bad?

I would think "MBIA" should have Ezposure to Eclipse Its NET Worth.:cool:

[DJofSD]

Um, like, didya even look at the initial message in the thread?

Is it bad or good -- I expect it means more foreign ownership of US assets in our future.

[skate]

Aaaaaaa, i suspect that the quote was from initial message...Like "your Message"



I always read and I always answer, if i see the request


and do you also expect that more foreign ownership is GOOD?;)


Once in a while, i post my reason for a return post and part of that reason might just be the fact that i did not read anyones WHOLE post. that is my attempt at being honest about someones post.

Also also also, i note Many Many times, others do not read and or comprehend and this has NOTHING to do with reading my post. People don't read other's posting, they assume. And with this in mind, the-skate attempts maturity by explaining "just what the-skate Did".;)


Sorry, but until you splaim otherwise, the-skate doesn't know what to do, thanks.

[skate]

MBIA, the world's largest bond insurer, said on its Web site late Wednesday that it has exposure to $30.6 billion in complex mortgage securities that it insures, an amount that eclipses its entire net worth.


Is that Good or Bad?

I would think "MBIA" should have Ezposure to Eclipse Its NET Worth.:cool:



If the message on top of this post "is the initial message", then yes i did read the initial message.

Foreign investment is Always good.:cool:

[DJofSD]

I believe limited foreign investment is good -- a whole sale loss of control to offshore interests is not.

[PaceAdvantage]

I believe limited foreign investment is good -- a whole sale loss of control to offshore interests is not.It's not like this is the first time this has happened.....Japan in the 80s or thereabouts....

[skate]

I believe limited foreign investment is good -- a whole sale loss of control to offshore interests is not.

ok ok ok , as long as investment stays under 50%. it's good for our economy.

not only good, but without foreign investments, the system would not work.

[cmoore]

MBIA, the world's largest bond insurer, said on its Web site late Wednesday that it has exposure to $30.6 billion in complex mortgage securities that it insures, an amount that eclipses its entire net worth.


Is that Good or Bad?

I would think "MBIA" should have Ezposure to Eclipse Its NET Worth.:cool:

now that's funny...

[ddog]

Bill pays salary to tens of thousands of employees worldwide. Gate's financial health is vitally important to many. Answer me this: would you rather work for a rich or poor boss? Wonder who deposits checks on schedule? Wonder who has a decent health care plan? Paid vacations?

Stock markets are an essential component to overall health of nations. Just ask communist China. Contrast Cuba or Oil rich yet poor Venezuela. Contrast commodity poor yet wealth Hong Kong.
__________________________
Anyone who thinks there's safety in numbers hasn't looked at the stock market pages. Irene Peter


Gates has not paid salary to anyone with MS for decades.
MS pays the salary.
Gates skims off the top.

You seem to be confusing stock markets with financial markets.
They are not the same from my point of view.

I would rather work for myself, no boss.
Second choice would be for a POOR boss and a rich company.



As to stock markets, that's a very short term view.
They can be essential to the collapse of a nation as well.

I didn't go back and read the whole thread but I suspect we are off course at this point.