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Frontrunning: September 30
- ADP jobs number worse than expected at 254,000, on 200,000 cuts expected (Bloomberg)
- Mortgage demand falls despite artificially low, Fed-manipulated mortgage rates (Reuters)
- Neverending government stimulus revision update: Q2 GDP at -0.7% (AP)
- IMF warns on rising bank losses - have no fear, Obama will fund IMF... forever - gotta unfund that quadrillion $ budget deficit somehow (Reuters, FT)
- Indland empire shopping center for sale - calling all investors sekking to lose money (Retail Chatr)
- Poland budget deficit apparently not an issue as country plans to stop rate cuts; even countries that can not issue debt want strong currency vs dollar (Bloomberg)
- UBS warns on third quarter loss (WSJ)
- Another Hail Mary for bankrupt CIT from Barclays and... bankrupt CITI; yes, one bankrupt company saving another (Bloomberg)
- Ex-Moody's employee warned SEC about muni issues (AP)
- Is it time to recognize reality? (Karl Denninger)
- Pickup sales fall in another blow to automakers (NYT)
- Confidence (games) surges among US CEOs; results, no so much (FT)
- Pimco warns on deflation to come (Fundmastery)
- Mortgage deadbeats plague home market (RCM)
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Better than expected GDP [Government Debt Production] not having the effect of sugar in kids as it usually does.....LOL
Can GDP even be looked at as a metric anymore with the intense meddling of the fed? It is so skewed by stimulus and overt manipulation and so blatantly lacks comsumer participation that I fail to see how anyone can even use GDP to guage the REAL economy from where it was a year ago.
Manufacturing road signs that tell drivers their stimulus dollars and recovery act funds are at work is a lot different than people building and buying cars, lawnmowers, campers and boats.
"Q2 GDP numbers better than expected. Goverment Q2 spending higher than expected". Shocking
According to two recent studies, these so-called "strategic mortgage defaulters," an innocuous name for deadbeats who can afford to pay off their mortgages but choose not to, make up a far greater share of the market's woes than we generally assume.
Deadbeats? Heck, if the loan is nonrecourse and the property LTV has fallen 20%-40% then only a fool would continue the loan. The real deadbeats are the mortgage holders who refuse to mark these loans to market and recognize their losses like those that are defaulting.
Agreed. The banks set the example. They made they bed, let them sleep in it
When a corporation does something along these lines, it's brilliant (or at a minimum defensive) business strategy.
When Joe six pack does it, s/he is morally deficient and a deadbeat.
All hail the corporate masters who can do no wrong.
And this little snippet...as if we didn't already know about Countrywide's VIP program. When the WSJ confirms it it's news though.
Paging Senator Dodd??????
http://online.wsj.com/article/SB125409393986744897.html
The Denninger article spells it out so simply. More headscratching ensues as to why it still needs to be explained to so many people. The case we are making is not for total death and destruction, but for the real writedowns of the real bad debt. The reason is not destruction, but the ability to establish a foundation on reality. What is so hard about this? I mean yes, I know what's hard about a gigantic social write off across the board with nearly entire industries collapsing as a result, but what is so hard to understand about WHY it must be done?
"Mortgage deadbeats plague home market". Interesting story. Love the FBI stat about fraud. Does that include the fraud perpetrated by Wall Street when they packaged and sold that AAA-okay paper? Oh wait, they the victim.
Missed a payment on your Freddie Mac mortgage? Didn't return their phone calls? Expect a knock on your door from Titanium Solutions who is ready to sympathize with your recent financial troubles. Of course they may just have a copy of your deed handy, so just sign here, here, and here.
http://www.housingwire.com/2009/09/29/freddie-to-door-knock-deliquent-bo...
As pointed ou the other day. Most of the shorts who bet right last week, were squeezed out on Monday.
We could slice through 1040 here and start a new leg down now. The ecomomic data is starting to disappoint. Dollar looks set for rally on the weekly chart.
Strategic default makes good business sence. This is exactly the strategy promoted by Wall St., Donald Trump, big banks, etc. It is disgusting that these economic pundits preach morality to trap people into home mortgage debt slavery while the elite in business/politics get to exercise "good business" practices (i.e. It's only business). Where I live in So. Cal, I activly promote the idea of strategic default at BBQ's, to co-workers, friends and anyone else who will listen. Mark it to 0.
Is Fort Knox empty? The Federal Reserve lied about gold swaps.
http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=7825
In the interest of national security and saving their own asses, they (meaning Fed, Tres, the entire Govt and every last corporation) will lie and lie some more.
US secretly tried to make deal with Goldman Sachs in wake of financial crisis.
Vanity Fair to release story today:
http://rawstory.com/2009/09/us-secretly-tried-to-make-deals-with-goldman...
Thanks for the link to www.retailchatr.com Tyler. Much appreciated.