Category Archives: housing

Extreme Measures II: Gillian Tett at the Financial Times

Yves Smith at Naked Capitalism submits: Recently, we’ve noticed a new theme among economics writers: Extreme Measures. Commentators have looked toward the end of the road we are on and fear it leads to a precipice. Hence the calls for … Continue reading

Posted in banking, bonds and loans, hedge funds, housing, regulation | Comments Off on Extreme Measures II: Gillian Tett at the Financial Times

Extreme Measures I: Bill Gross at Pimco

Yves Smith of Naked Capitalism submits: We’ve noticed a new theme among economics writers: Extreme Measures. Commentators have suddenly looked into the abyss, either of the depth of the US subprime/housing problem or the progressing credit crunch that has already … Continue reading

Posted in banking, bonds and loans, housing, regulation | Comments Off on Extreme Measures I: Bill Gross at Pimco

Ken Lewis’s Savvy Countrywide Investment

Bank of America has managed to nab itself a very attractive
investment in Countrywide.
Continue reading

Posted in banking, housing | Comments Off on Ken Lewis’s Savvy Countrywide Investment

Suprime Collateral Damage: Homes in Chelsea (London)

Yves Smith of Naked Capitalism submits: Bloomberg tells us that sales of 2 million pound ($4 million) homes and flats in London are on hold as buyers pull back, expecting subprime woes to put a damper on City bonuses this … Continue reading

Posted in housing | Comments Off on Suprime Collateral Damage: Homes in Chelsea (London)

Special Situation: Lehman Subprime Unit Shutdown

Yves Smith of Naked Capitalism submits: The securities industry is highly cyclical, and like the markets they trade in, Wall Street firms are prone to overshoot and undershoot. Executives cut too deeply in downturns, resolve not to repeat that mistake … Continue reading

Posted in housing | Comments Off on Special Situation: Lehman Subprime Unit Shutdown

Mortgage Delinquency Rises at Fastest Rate in 17 Years

Yves Smith of Naked Capitalism submits: Bloomberg informs us that the FDIC has released data showing that mortgages over 90 days past rose over 36% from second quarter last year to second quarter this year, the biggest increase since 1991. … Continue reading

Posted in housing | Comments Off on Mortgage Delinquency Rises at Fastest Rate in 17 Years

Bush’s FHA Band-Aid

Yves Smith of Naked Capitalism submits: The Bush Administration, which resisted proposals to have Fannie Mae and Freddie Mac buy more mortgages to alleviate stress in the housing markets, is instead looking to the Federal Home Administration, which traditionally has … Continue reading

Posted in housing, Politics | Comments Off on Bush’s FHA Band-Aid

Changing Motivations for Home Ownership

Yves Smith at Naked Capitalism submits: Courtesy Paul Kedrosky at Infectious Greed comes this chart that shows over time how renters’ reasons for taking the plunge into home ownership have changed. While this is a UK rather than US sample, … Continue reading

Posted in housing | Comments Off on Changing Motivations for Home Ownership

Municipalities May Suffer Subprime Fallout

Yves Smith of Naked Capitalism submits: Gillian Tett, in “Credit compass fails to work,” in the Financial Times (subscription required), uses the woes suffered by monoline insurers such as MBIA and Ambac to illustrate that in our current credit crunch, … Continue reading

Posted in bonds and loans, cities, housing | Comments Off on Municipalities May Suffer Subprime Fallout

Paul Krugman Does a Hail Mary Pass

Krugman recommends that the Federal government buy mortgages to rescue stressed borrowers. Does he realize that the only realistic way to make this happen in our Brave New World of voodoo credit is to expropriate assets?
Continue reading

Posted in banking, housing, regulation | 1 Comment

How Tight Are Mortgage Underwriting Standards, Really?

The WSJ’s Jonathan Karp wants to tell us "How
the Mortgage Bar Keeps Moving Higher
", in the words of his headline.
Continue reading

Posted in housing | Comments Off on How Tight Are Mortgage Underwriting Standards, Really?

Cramer’s Meltdown Spills Into Print

There’s a school of thought that Jim Cramer just plays a screaming
nutcase on
TV
, that in reality he’s actually quite smart and knows his onions.
Continue reading

Posted in housing, Media | Comments Off on Cramer’s Meltdown Spills Into Print

Mortgages go Messianic

It seems that Patrick Flood, the former CEO of
Christian mortgage lender HomeBanc, has a fully fledged Messianic
Complex
.
Continue reading

Posted in housing | Comments Off on Mortgages go Messianic

Abolish Mortgage-Interest Tax Deduction, But Not Now

Matt Cooper is 100% right, today, when he says that we should
abolish
the mortgage-interest tax deduction
.
Continue reading

Posted in fiscal and monetary policy, housing, Politics | Comments Off on Abolish Mortgage-Interest Tax Deduction, But Not Now

When Is A Bailout Not A Bailout?

Dean Baker says
it’s bailout
– of hedge-fund managers, no less. Tim Worstall
says
it’s a bailout
, which raises all manner of moral-hazard issues. Joanna
Ossinger
says
it’s a bailout
. But it’s not.
Continue reading

Posted in housing | Comments Off on When Is A Bailout Not A Bailout?

Let Fannie and Freddie Buy Profitable Mortgages

Is it a good idea to lift restrictions on the kind of mortgages that Fannie Mae and Freddie Mac can buy? In a word, yes.
Continue reading

Posted in housing | Comments Off on Let Fannie and Freddie Buy Profitable Mortgages

How Politicians Can Help Fix the Mortgage Mess

Hillary Clinton has a plan to address
the subprime mortgage mess
, and, to my surprise, it’s actually eminently
sensible.
Continue reading

Posted in housing, Politics | Comments Off on How Politicians Can Help Fix the Mortgage Mess

Countrywide Falls to Book Value

Dave Neubert is buying
shares in Countrywide
, and it seems he’s mainly looking at one crucial indicator:
the price-to-book ratio.
Continue reading

Posted in housing, stocks | Comments Off on Countrywide Falls to Book Value

Subprime in Germany

Who or what is an IKB? I know there are lots of obscure European banks, but
IKB is obscure even by German standards. And somehow – really, no one
seems to have the foggiest notion how – IKB’s Rheinland Funding vehicle
seems to have contrived to amass an eye-popping €17 billion ($23 billion)
in US
subprime exposure
.
Continue reading

Posted in banking, bonds and loans, hedge funds, housing | Comments Off on Subprime in Germany

How Non-Recourse Mortgages Can Drive Default Rates Up

In some states, mortgages can be non-recourse.
Continue reading

Posted in housing | 1 Comment

Subprime: The Cause Of All Market Moves

It’s all subprime’s fault.
Continue reading

Posted in housing | Comments Off on Subprime: The Cause Of All Market Moves

Great Moments in Punditry: Jim Cramer on Housing

If I have any ambitions of being a financial pundit, should I try to come up
with stuff like this, from Jim Cramer?
Continue reading

Posted in housing, Media | Comments Off on Great Moments in Punditry: Jim Cramer on Housing

Mortgage Mess: It’s Not the Fault of Accounting Rules

There are many reasons why the mortgage market is looking ugly right now. But accounting rules in general, and FAS 140 in particular, are not among them.
Continue reading

Posted in housing | Comments Off on Mortgage Mess: It’s Not the Fault of Accounting Rules

New ABX Mortgage Index Still Looks Ugly

The much-followed ABX index of subprime mortgage bonds rolled over yesterday.
Continue reading

Posted in bonds and loans, housing | Comments Off on New ABX Mortgage Index Still Looks Ugly

Chart of the Day: Fixed vs Variable Subprime Default Rates

Alea today finds the most astonishing
chart, which I simply have to reproduce:
Continue reading

Posted in housing | Comments Off on Chart of the Day: Fixed vs Variable Subprime Default Rates