[mmasters]

I think it's like peak oil in a lot of ways. Peak oil and finance are similar nuts to crack, however the finance one has much more deception associated with it and has been around a lot longer.

[PenultimateManStanding]

$this->bbcode_second_pass_quote('mmasters', 'I') think it's like peak oil in a lot of ways. Peak oil and finance are similar nuts to crack, however the finance one has much more deception associated with it and has been around a lot longer.

[RonMN]

Quote:
“We believe we are in the early stage of a correction in this market and that the market will eventually implode,” said Paulson & Co., a New York-based fund that manages $11 billion.

What does this subprime fallout mean for the average homeowner or purchaser? “Essentially the subprime mortgage industry—which lends to consumers with credit issues—is gone,” and those lenders that remain are tightening their lending standards, says msn Money’s Bill Fleckenstein.

In other words, a whole segment of the U.S. populace will no longer qualify for home loans.

But the damage may not just be contained to the subprime sector. According to Fleckenstein, “Alt A lenders”—companies that lend to people one step above “subprime”—will be the next section within the mortgage industry to collapse.

Link

[emersonbiggins]

Domino effect - Prairiemule has it on the nose, even those considered 'prime' have overbought and are now destined to suffer as well. The "flip, rinse and repeat" game is over, especially now as 'potential' buyers are being shut out of the market (as they should be - since when is home ownership an entitlement?). Not even the illegals can keep the racket afloat now, and other renters (like myself) are waiting on the sidelines for some "great deals".

[TommyJefferson]

$this->bbcode_second_pass_quote('emersonbiggins', '.')..other renters (like myself) are waiting on the sidelines for some "great deals".

[I_Like_Plants]

I probably could have squeaked into a condo in Irvine in 2000, and I wish I had, now, assuming I'd have had the presence of mind to not re-fi myself to death and to get out in 2005......

[PrairieMule]

Looks like New Century just filed CH11 and will let 3,200 people go In Irvine (I hope none of their employees have ARMs coming due).They are the 2nd largest originators of subprime loans.

full story

I wish you could hear these some of calls from the lenders. Prime and Subprime, doesn't matter. All of em' bitching about the appraisals coming in low and new FICO requirements. Couple that with all the ARM's coming due.

Not good.

[Niagara]

Won't the FED just lower interest rates a notch to take some of the sting out of the housing crisis?

They're between a rock and a hard place; the interest rates need to stay fairly high to prop up the dollar, but the economy must be kept humming along.

[tsakach]

$this->bbcode_second_pass_quote('PrairieMule', 'L')ooks like New Century just filed CH11 and will let 3,200 people go In Irvine.

[max_power29]

[quote="PrairieMule"]All of em' bitching about the appraisals coming in low[\quote]

What forces keep the appraisers honest? You'd think it would be in their best interests to just make favorable reports for everybody. Can they be sued by the mortgage companies or something?

[TommyJefferson]

This video was rather humorous...

http://www.paperdinero.com/BNN.aspx?id=123

"Comedian Kathleen Madigan argues that lenders should not be bailed out by the government. The subprime slime may not have fully spilled over into the economy as of yet but it certainly has infected popular media."

[smiley]

$this->bbcode_second_pass_quote('', 'W')on't the FED just lower interest rates a notch to take some of the sting out of the housing crisis?

[TommyJefferson]

$this->bbcode_second_pass_quote('smiley', 'I') think they will try to stall that decision as long as possible.

[Daculling]

Check out this fun video that's been clogging the nets' I puked at the end though...

Youtube Link

[xarkz]

http://www.ml-implode.com/

Latest count of major US mortgage lenders that have croaked since late 2006: 50

the number was 20 just 2 months ago.

will we see 100 this year? (or how many are left?)

[skiwi]

Fallout in US subprime mortgage market could spread

$this->bbcode_second_pass_quote('', '1')1:30AM Wednesday April 11, 2007

NEW YORK - Fallout in the US subprime mortgage market could spread to related markets, the International Monetary Fund warned today, as nagging worries about housing helped weaken the dollar.

Shares of real estate investment trust American Home Mortgage Investment Corp tumbled for a second day on Tuesday after the REIT slashed its profit forecast last week.

The company's shares fell on investor concern that problems in subprime mortgages may be spreading to higher-quality housing loans, a view the IMF also gave credence to.

The IMF said in its semi-annual Global Financial Stability Report that a decline in the subprime market was more rapid than expected at this point in the overall housing downturn...

[Plantagenet]

Housing prices haven't really come down much if at all, except for condos and such in extremely overbuilt areas like Miami.

[threadbear]

$this->bbcode_second_pass_quote('Plantagenet', 'H')ousing prices haven't really come down much if at all, except for condos and such in extremely overbuilt areas like Miami.

[Plantagenet]

Many recent purchasers were speculators, who bought with little down in the hope they could flip it for a profit.

At the peak of the Florida boom, condos and home contracts were being sold and resold prior to the completion of the building.

This kind of speculation drove housing prices through the ceiling. Now that the bubble is bursting, the speculators are getting hurt and average people are seeing cheaper home prices again.

Whats wrong with cheaper housing?

[I_Like_Plants]

Many recent purchasers have NO equity in their homes, remember it's over the last year that the increases in prices leveled off or started to decrease. And remember the payments are almost all interest and very little principal, at first. They're all interest or even a promotional low payment that doesn't even cover all of the interest, much less principal, in these subprime and alt-A loans.

Many of those who do have equity are losing it in the process of inflation and decreasing prices, and if they've been refinancing to support their lifestyle, from what I observe, they're keeping right on doing that.