Housing Bottom Watch Two blonds are facing each other across a large river. One cries out to the other, “How can I get to the other side?” The other responds, “Duh, you ARE on the other side!” Are we on the “other side” when it comes to the housing market? Not according to a Harvard
June 2009
Below is an excerpt from quant analyst and pundit Barry Ritholtz about the bailout costs. It’s highlighted in his new book Bailout Nation—the graphic is particularly alarming. It is exceedingly difficult to convey exactly how much we are spending on all these bailouts. Whenever I start talking trillions (versus mere billions), I get puzzled looks
Spencer D writes, “One of the little known effects of the economic slowdown is a dramatic drop off in the portable john business as the home building industry was one of their biggest customers. You might say their business is in the toilet! I don’t know whether or not they have applied for a bailout
This week was the 24th week of a mortgage bond purchase program by the Federal Reserve—here’s week 23. Beginning on June 11 and ending on June 17, the Fed bought $20.29b net of mortgage bonds—below is a table breaking down the amounts for each coupon and maturity across the three agencies that issue mortgages: Fannie
The woman applying for a job in a Florida lemon grove seemed way too qualified for the job. “Look Miss,” said the foreman, “have you any actual experience in picking lemons?” “Well, as a matter of fact, yes!” she replied. “I’ve been divorced three times.” 3 Bits of Good Mortgage Industry News We had three
When I was in high school I was dating a deaf girl. One night I went to pick her up and found her in the arms of my best friend who was also deaf. I should have seen the signs. Rates Better on Weak Economic News What “signs” are the economy showing which may help
Everyone’s favorite topic: when will the Fed start to hike rates? If you asked that question to traders last week, they would have said ‘Very soon’ and this week, inflation doesn’t seem to be a concern anymore. Here’s what Fed Funds futures look like last month versus this month:
Would you like to feel your head spin? Check out the US Debt Clock. ARM Originations Up As Rates Rise Folks following rates will notice that with the steeper yield curve, interest in ARM loans has picked up. Bank-to-bank lending rates have plunged to near record lows in recent weeks, a positive indication for the
There’s been a lot of chatter lately about banks repaying TARP funds, and disconcertingly, saying they didn’t need the money in the first place. How easily they forget … it’s just like in my daily business, I come across a lot of real estate dealmakers who are quick to assess blame when a deal is
The Economist offers some interesting takes on the politics of debt: …Whenever Republicans accuse Mr Obama of fiscal profligacy, Democrats have three easy answers. The first is to accuse them of hypocrisy—why did conservatives not speak up when Mr Bush was splurging red ink? The second is to blame all fiscal problems on Mr Bush.
I was on a roller coaster over the weekend just when amusement park operator Six Flags declared bankruptcy. Talk about a thrill. They said that the company will keep its parks open at least for now (they had 25 million visitors in 2008) but according to the Washington Post, the company is carrying $2.4 billion
From the Wall Street Journal: BlackRock Inc. reached an agreement to buy Barclays Global Investors from Barclays PLC for $13.5 billion, creating a money-management titan roughly twice the size of its closest competitor. The firm, renamed BlackRock Global Investors, will have more than $2.7 trillion in assets under management. The deal makes BlackRock, already a
According to Mortgage Market Guide: Since May 21, the 4.5% coupon has shed 556 basis points, pushing home loan rates to the highest level since the Federal Reserve announced its Mortgage Backed Security purchase plan back in November. Fears of future inflation and added supply have been the culprits behind the recent sell-off.
Two cannibals are eating a clown. One says to the other: “Does this taste funny to you?” Warehouse Lending Setback There’s nothing funny about Colonial BancGroup’s Cease and Desist order, which may impact warehouse lending (many mortgage companies rely on Colonial for a warehouse line to fund their loans) and also Taylor Bean’s partial acquisition
Bloomberg reports that Option ARMs are a threat to the housing recovery as many will adjust in 2010 and 2011. Option ARMs are loans that allow the borrower, if they choose, to make a payment based on a 2-4% rate which means they’re paying less than the total interest due and the deferred interest gets
This week was the 23rd week of a mortgage bond purchase program by the Federal Reserve—here’s week 22. Beginning on June 4 and ending on June 10, the Fed bought $23.02b net of mortgage bonds—below is a table breaking down the amounts for each coupon and maturity across the three agencies that issue mortgages: Fannie
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