Tilted Forum Project Discussion Community - View Single Post - 1992 Redux: Will "it's the economy, stupid", Be The Big Campaign Issue?

host · 03-12-2008, 02:22 AM

I don't think Citicorp will be permitted to file BK before the election, but it probably is insolvent now:
http://market-ticker.denninger.net/2...lls-again.html

How many of these on the Fed's list of primary dealers do you think are already at "death's door", and would have already failed if not for the Fed's "socialtistic" interference and manipulation of "free markets"?

http://www.newyorkfed.org/markets/pr...s_current.html

How do you think things are going to progress when the unemployment effect from the decline fo the economy actually influences the ability of home mortgage debtors to make monthly mortgage payments?

I see a progressing "snowball effect", people who have the ability to pay, will cease making payments and walk away when their home valuations drop too far below the outstanding balances of their home mortgage loans.

I am certain there are still a slew of doubters that it will ever "get that bad", but, consider the precarious position, already, of the "primary dealers" and Fannie and Freddie. Who will the mortgage lenders be in the future, and at what interest rate? Who will qualify for mortgage loans?

This bubble was fed by lending conditions whereby anyone who could fog a mirror got approved for a loan. Home prices could only go higher and higher, so tight appraisal standards were unneeded and unheeded. The outstanding mortgage loans are contaminated with over appraised collateral and borrowers of exaggerated credit quality, as are the mortgage bonds they were lumped into. The bond insurers artificially....by insuring the mortgage bonds, raised the credit quality of the mortgage bonds.

The bond insurers will not survive the claims against their assets. The implosion is accelerating, as described at the page first linked in this post.

All the fed and Bushist manipulation in the world will not prevent things economic from looking very ugly this october. The only sure thing is that gasoline prices will drop, with the US economy.

03-12-2008, 02:22 AM	#123 (permalink)
host Banned	I don't think Citicorp will be permitted to file BK before the election, but it probably is insolvent now: http://market-ticker.denninger.net/2...lls-again.html How many of these on the Fed's list of primary dealers do you think are already at "death's door", and would have already failed if not for the Fed's "socialtistic" interference and manipulation of "free markets"? http://www.newyorkfed.org/markets/pr...s_current.html How do you think things are going to progress when the unemployment effect from the decline fo the economy actually influences the ability of home mortgage debtors to make monthly mortgage payments? I see a progressing "snowball effect", people who have the ability to pay, will cease making payments and walk away when their home valuations drop too far below the outstanding balances of their home mortgage loans. I am certain there are still a slew of doubters that it will ever "get that bad", but, consider the precarious position, already, of the "primary dealers" and Fannie and Freddie. Who will the mortgage lenders be in the future, and at what interest rate? Who will qualify for mortgage loans? This bubble was fed by lending conditions whereby anyone who could fog a mirror got approved for a loan. Home prices could only go higher and higher, so tight appraisal standards were unneeded and unheeded. The outstanding mortgage loans are contaminated with over appraised collateral and borrowers of exaggerated credit quality, as are the mortgage bonds they were lumped into. The bond insurers artificially....by insuring the mortgage bonds, raised the credit quality of the mortgage bonds. The bond insurers will not survive the claims against their assets. The implosion is accelerating, as described at the page first linked in this post. All the fed and Bushist manipulation in the world will not prevent things economic from looking very ugly this october. The only sure thing is that gasoline prices will drop, with the US economy.