[ColossalContrarian]

Thought I'd bump this thread….

Here’s a peek at the subprime peak to come December 07’



I'm guessing it'll be a few years before housing starts to recover.

[mmasters]

Geez, that averages out to about 30 billion a month in ARM resets every month for the next 5 years!

[RonMN]

WOW!

Quote:
GMAC LLC, the auto and home lender formerly wholly owned by General Motors Corp., reported a $305 million first-quarter loss on a ``sharp downturn'' in the U.S. mortgage market.

The results compared with year-earlier net income of $495 million, Detroit-based GMAC said today in a statement. The Residential Capital LLC home-lending unit lost $905 million compared with year-earlier earnings of $201 million.

[RonMN]

Bear Stearns Hedge Funds Adrift

Quote:
CREDIT markets across the world are braced for trouble after Merrill Lynch abandoned efforts to save two Bear Stearns hedge funds, forcing the sale of $US850 million ($1 billion) of sub-prime mortgage bonds and other assets for debt repayment.

JP Morgan and other big creditors have yet to decide whether to enforce margin calls as a panic sell-off in the market for 2006-vintage mortgage securities pushes the two asset management funds towards the brink.

Sources close to the deals said Bear Stearns was trying to organise "an orderly unwind", conceding that the funds could not be saved.

The mushrooming crisis is the worst hedge fund upset since last year's collapse of Amaranth Advisers, which lost $US6.7 billion betting on gas futures. This time, the ramifications may be broader as the worsening property slump engulfs a large chunk of America's $US2000 billion sub-prime mortgage sector.

Robert McAdie, a credit strategist at Barclays Capital, said traders were watching closely for signs of distress in any other funds playing the securities and debt markets.

"If we see another hedge fund having to liquidate, this could grow bigger," he said.

<Read More at Link>

[NotMyBlood]

Something in the middle east has to break and soon. I see a larger war involving Turkey, Isreal, Iran, Hamas, Hezbulloh, Syria, Egypt, SA.....the whole region will be dragged into it. WW3/4? Countries/Governments have certaintly postioned themselves for it.

[PraiseDoom]

$this->bbcode_second_pass_quote('Gideon', 'Y')ou know, the shit is really starting to hit the fan.

[MattSavinar]

$this->bbcode_second_pass_quote('Gideon', '[')url=http://www.ft.com/cms/s/343aca72-2f1a-11dc-b9b7-0000779fd2ac.html]Get Out Get Out Whenever You Can[/url]$this->bbcode_second_pass_quote('', 'M')arkets were rattled when Standard & Poor’s, the ratings agency, threatened to downgrade the credit ratings on some $12bn of bonds backed by US subprime home loans. This raised concerns of a broader repricing of risk in credit markets, leading to heavy losses for some investors, particularly in derivative markets.

[seldom_seen]

$this->bbcode_second_pass_quote('Gideon', 'T')he republicans only hope to keep power in 08 is to False Flag big time in the next 6-8 months.

[DantesPeak]

$this->bbcode_second_pass_quote('MattSavinar', '')$this->bbcode_second_pass_quote('Gideon', '[')url=http://www.ft.com/cms/s/343aca72-2f1a-11dc-b9b7-0000779fd2ac.html]Get Out Get Out Whenever You Can[/url]$this->bbcode_second_pass_quote('', 'M')arkets were rattled when Standard & Poor’s, the ratings agency, threatened to downgrade the credit ratings on some $12bn of bonds backed by US subprime home loans. This raised concerns of a broader repricing of risk in credit markets, leading to heavy losses for some investors, particularly in derivative markets.

[Cobra_Strike]

There was another that downgrades/issued warnings in the afternoon...Moodies was the name of it I believe.

There is going to be a hell of a run on the exits as downgrades start domino effecting the market.

Tomorrow will be 'exciting' as we will also have oil inventory numbers to look at.

[steam_cannon]

$this->bbcode_second_pass_quote('seldom_seen', '')$this->bbcode_second_pass_quote('Gideon', 'T')he republicans only hope to keep power in 08 is to False Flag big time in the next 6-8 months.

[cynthia]

$this->bbcode_second_pass_quote('Gideon', '')$this->bbcode_second_pass_quote('SeldomSeen', 'A')re you trying to imply that we have a two party system? haha.

[seldom_seen]

$this->bbcode_second_pass_quote('Gideon', 'I') guess what I mean is that the entourage that is Bush/Cheney and their close allies can continue their current course better through a stooge like Romney than a stooge like Hillary, and they want to avoid all risk of a candidate getting into power from the Dems who is a corporate whore but who might hesitate to expand war. Edwards comes to mind, but there are others. It would be much easier to get Giulliani in if there was another 911 before the next election.

[denverdave]

$this->bbcode_second_pass_quote('Gideon', '[')url=http://www.ft.com/cms/s/343aca72-2f1a-11dc-b9b7-0000779fd2ac.html]Get Out Get Out Whenever You Can[/url] $this->bbcode_second_pass_quote('', 'M')arkets were rattled when Standard & Poor’s, the ratings agency, threatened to downgrade the credit ratings on some $12bn of bonds backed by US subprime home loans. This raised concerns of a broader repricing of risk in credit markets, leading to heavy losses for some investors, particularly in derivative markets.

[NotMyBlood]

$this->bbcode_second_pass_quote('denverdave', 'E')ven a false flag operation may not save them now. Bush got a free pass on 9/11, but if it happens again, people will either assume it is a false flag, or that it's the last straw of incompetence for Bush. You know, fool me once, shame on you, fool me twice, shame on me. People are a lot more jaded and cynical now than they were before September 2001. I think Bush actually has kept us safe from terrorist attacks in a perverse sort of way by giving our enemies everything they wanted. He is the goose that lays golden eggs. It is like the diminishing marginal returns of terrorsim: why waste resources and martyrs on people who are already scared shitless when there are so many fresh targets?

[PraiseDoom]

$this->bbcode_second_pass_quote('NotMyBlood', 'I') dont think AQ is concerned so much about "scaring" people anymore. I think 9/11 showed the world and AQ just how easy it is to bring the world's major economies to a halt.

[Zardoz]

$this->bbcode_second_pass_quote('Gideon', 'M')an, I'm getting a really bad feeling about this Scoob.

[Baldwin]

We're on borrowed time and borrowed cash. Viciously raping oil fields of what they have means that Hubbert's curve will have a steeper gradient on the right than the left. The Federal Reserve Note (aka the dollar) is quickly heading into the "circular file".

It is only a matter of time before we experience hardship. Predictions of us in Olduvai gorge/the stonge age by summer's end is absolutely rediculous though.

I was watching CNBC today, I wish to see 3 things: the dow, the currency markets, and the price of silver/gold. Amazing, the dribble that the talking heads drone on about was not the usual sheeple-bleating around the maypole. It was somewhat more negative.

By the way, one of the carriers heading to the Gulf is going to be decomissioned in a few years. It would be so much cheaper to let Iran "decomission" the aging hulk (to the tune of 50 years old), wouldn't it?

[NotMyBlood]

By the way, one of the carriers heading to the Gulf is going to be decomissioned in a few years. It would be so much cheaper to let Iran "decomission" the aging hulk (to the tune of 50 years old), wouldn't it?

I dont think Iran is that stupid, or are they?

[Roccland]

Mish

$this->bbcode_second_pass_quote('', '[')b]Questions To Ponder

How many billions of dollars will be lost because of absurd pricing models?

How can it be that an entire system of investment decisions are based on ratings that the ratings companies tell everyone not to use for investment purposes?

Were the ratings companies grossly incompetent or just foolish?

Will the disclaimers of the ratings companies hold up in court?

How long will it be before there be a court test of those disclaimers?

Why has only a minuscule portion of subprime debt (2.1% or $12 billion of a massive $565.3 billion of subprime bonds) downgraded. See Stress Test.

Are the ratings companies under pressure by the banks and/or the Fed to not rerate this debt?

Why is it that ratings companies are allowed to have outside business relationships with the companies whose debt they rate?

Did banks realize how absurd those ratings were but look away because of greed and the ease in offloading he debt to pension plans, insurance companies, and hedge funds out of pure greed?

Heck, did the upper echelons at the ratings companies themselves know their ratings model was flawed and look the other way out of greed?

How long before there is a government sponsored bailout of this mess? Hint small ones are starting already. See Please - No More Help! for a discussion.

How long before Bernanke starts cutting rates?

How high will gold prices rise when Bernanke starts cutting?

Here's the big question:

How big will the taxpayer bailout be?

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