The Darkest Storm is About to Descend - You Can't Imagine the Carnage

Discussion in 'Economics' started by ByLoSellHi, Jul 22, 2008.

  1. Ummm thats exactly whats happening all around the country. the people on the ground floor that deal with the foreclosures don't really have the companies best interest in mind. They are governed by a set of rules...rules that were probably developed years ago and that actually arent working at all in the companies favor right now. they dont have the people, knowledge, or money to look at every foreclosure and work out a deal with the borrower that will be better for both the lender and borrower.

    e.g. john smith lost his job in real estate and now can only pay 80% of his mortgage payment. he calls the lender and says either he has to foreclose, or the interest rate has to drop. a foreclosure is expensive enough, especially now when the bank will only get 75% of what they financed 3 years ago...but they people that make the decision don't have the resources to look at the situation and do whats in the best interest of the bank...they do what they were trained to do 3 or 4 years ago, they foreclose and instead of losing some profit, they take a huge loss. oh and guess what, this loan may not have been subprime
    #31     Jul 23, 2008
  2. ByLoSellHi, I agree with everything you said. There are so many properties in default that have yet to be foreclosed upon.

    However don't underestimate Paulson and Co.
    #32     Jul 23, 2008
  3. That's fine. Let's just play the tape just like March - May :D

    Just a reminder, JPM's Dimon said that prime is in trouble. Read AXP's CC (I read it in Forbes) - people with higher credit score > 650 are showing some problems too. I almost fell off my chair after I read that.
    #33     Jul 23, 2008


    no one even responded....

    :confused: :confused: :confused: :confused: :confused: :confused: :confused: :confused:
    #34     Jul 23, 2008
  5. Financials are about to submit to another round of merciless beatings.

    Retailers won't be far behind. Everything goes on sale when no one has any cash.
    #35     Jul 23, 2008
  6. 2ticks don't mind him, he still believes what CNBC tells him(brainwashes).

    "The market has priced it in"

    "The market is forward-looking"

    "The market prices in 6 months going forward"

    #36     Jul 23, 2008

  7. Great thread ByLoSellHi I thoroughly enjoy reading your posts as dramatic and dark as they may be, I for one don't shy away from it anymore...
    #37     Jul 23, 2008
  8. [​IMG]
    #38     Jul 23, 2008
  9. One more thing before I'm off to bed;

    Anyone think the list of 19 that you can no longer short naked (regardless as to whether you think this is a good rule or not) is not relevant to continued bleeding on the part of note holders on real property and the loans that accompany them?

    That 30 day SEC reg was put into place purely as a means to provide some breathing room for the bag holders of toxic waste - the ones that will end up with real property they can do nothing with, that's worth 2% to 40% of the appraised value when the initial loan was made.
    #39     Jul 23, 2008
  10. I know this much - S2007, Buylow, and Mr. Dodge do not trade for a living. Because if you guys trade for a living, my heart breaks for your family and your bank account.

    Don't quit your day jobs. EVER.
    #40     Jul 23, 2008