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cause subprime borrowers are the tip of the iceberg. There are even more non subprime exotic loans out there that will reset, far more than subprime. When that happens, look out. They can't afford to forgive everyone I guess.
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Originally Posted by tkdmom
If the feds have cut rates a few times now why are the banks not passing it on to the subprime borrowers, so they can at least afford payments and stay in their homes ?
Or is that not how it all works !!!
Yeah wall street was screaming for an emergency rate cut down to 1% last week. If he does that we will be in a liquidity trap that will be very hard to get out of.
WHO got hurt the most by what happened to Bear Stearns? The employees and their pensions? Investors in other countries than the USA? Just curious as I know Golden Parachutes always mean the TOP Execs walk away unscathed (financially )!
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Originally Posted by Buckhead_Broker
There could be more. Goldman Sachs has 1.1 trillion in mortgage backed securities on it's books with only $40 billion in corresponding equity. Merrill Lynch has 1 trillion with only $27 billion in equity. Some of these institutions are having to raise money through sovereign investors - trading stock in the company for cash - to keep ahead of what is turning out to be a very dangerous game while foreigners end up owning a greater percentage of our top financial institutions. And it's not just dangerous for them. The average Joe Sixpack American is in debt up to their eyeballs with the largest portion of that being their mortgage or other debt against their primary residence. For many of these people who are facing declining real estate prices, they may find they owe more than the home is worth. If they walk away from the mortgage, the result will be additional unsold inventory which will further depress prices and affect people at the next level - with only a little equity in their home. The big institutions can't sell their mortgage backed securities - causing enormous write downs, the average American may not be able to sell (provided they have to) for enough to cover the mortgage, and those who'd like to buy a new house will have a greater difficulty getting a mortgage due to all of this mess.
I'll bet WaMu gets bought out soon. And Citi will probably need another cash infusion. And Wachovia is going to need an angel, too. Some of these CEOs should be facing prosecution. If they can send Martha Stewart to jail for $50,000, how much time would be fair for bilking billions?
I'll bet WaMu gets bought out soon. And Citi will probably need another cash infusion. And Wachovia is going to need an angel, too. Some of these CEOs should be facing prosecution. If they can send Martha Stewart to jail for $50,000, how much time would be fair for bilking billions?
I say they should indict Paulson as well. If he was in the private sector he would be targeted with class-action lawsuits. His statements over the past week were less than clear and IMHO seem fraudulent.
It would be good to see some of the simpletons who caused this go to jail.
Better yet, hang.
The financial affairs of this nation have been dominated by idiots for years-yes, idiots!
I was a Deputy Sheriff in Baltimore, and during the S&L debacle, I was the one who served the court papers-I was duty bound to at least skim every paper I served, and was that a revelation!
I met a lot of major bank executives-many of them, a half-witted dog could have cheated at cards.
We had a long boom, made a lot of stupid decisions, now comes the bust.
It's not over yet, but I think the time to start assigning blame and by God, making people pay a price, is now.
Might help next time, if there is a next time.
William Gibson, a science fiction author who is an eerily accurate prophet(even he doesn't know how he does it) says Japan is always ten years ahead of the rest of the world.
Japan tanked, and stayed tanked-they didn't descend into cannibalism, but they experience little growth.
Ever think, growth has it's limits?
And ever notice how much of the world is in chaos-pirates, brigands, mad tyrants and dysfunctional regimes?
I'll bet WaMu gets bought out soon. And Citi will probably need another cash infusion. And Wachovia is going to need an angel, too. Some of these CEOs should be facing prosecution. If they can send Martha Stewart to jail for $50,000, how much time would be fair for bilking billions?
I don't mind if the CEO's are getting a huge income but with being a CEO and having that huge income comes responsibility and they should be held accountable for their actions and decisions which could have mend a dissaster for many employees and customers. So a good and fair trial should be making the decision about how they did their job.
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Good post and I give you 4 REPS for it!!!
but....
)!
