The enormous mortgage-bond scandal “You thought the foreclosure mess was bad? You’re right about that. But it gets so much worse once you start adding in a whole bunch of parallel messes in the world of mortgage bonds. For instance, as Tracy Alloway says, mortgage-bond documentation generally says that if more than a minuscule proportion of notes in a mortgage pool weren’t properly transferred, then the trustee for the bondholders can force the investment bank who put the deal together to repurchase the mortgages. And it’s looking very much as though none of the notes were properly transferred.”
http://blogs.reuters.com/felix-salmon/2010/10/13/the-enormous-mortgage-bond-scandal/
Tagged: musings RSS
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Lyle
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I hope being short my broker isn’t bad karma or breaking some unwritten trading rule.
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Thought these words of wisdom from Howard would be a good chance to try out the ‘Press This’ feature. Here goes nothing!
There is NO good news accounted for in the tape.
On the bad news front…The US is broke, Obama is a goner, North Korea is going Nuclear, the European stress tests were a sham, the consumer and housing are dead, the machines are running the stock market and Goldman Sachs is the devil. Oh wait, $BP destroyed the Gulf coast too.
The bad news will always get the headlines, but headlines don’t make you money. You get better as an investor when you listen to the tape and follow the strength. The headlines will get bullish after huge gains are made.
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Teresa Lo
Live Mortgage-Free by Not Paying The Mortgage
I know many people are angry that banks allow loan modifications, but how do you feel knowing your neighbor lives rent free thanks to a strategic default? Get a load of this story:
Foreclosure has allowed them to stabilize the family business. Go to Outback occasionally for a steak. Take their gas-guzzling airboat out for the weekend. Visit the Hard Rock Casino.“Instead of the house dragging us down, it’s become a life raft,” said Mr. Pemberton, who stopped paying the mortgage on their house here last summer. “It’s really been a blessing.”
A growing number of the people whose homes are in foreclosure are refusing to slink away in shame. They are fashioning a sort of homemade mortgage modification, one that brings their payments all the way down to zero. They use the money they save to get back on their feet or just get by.
This type of modification does not beg for a lender’s permission but is delivered as an ultimatum: Force me out if you can. Any moral qualms are overshadowed by a conviction that the banks created the crisis by snookering homeowners with loans that got them in over their heads.
Where will they eventually live? Tent cities?
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patw
She looks happy.
Glad she thinks it funny. Another family living off the sweat of people who think it is wrong to not pay back what you borrowed, regardless of the circumstances. You do not get in over your head without knowing what you are doing, and if you did not truly know, you should not be allowed to buy a house -
chipnotized
I can’t stand to have an overdue dvd from blockbuster, let alone telling my bank to go pound sand when they have the audacity to ask me to pay back money I borrowed from them. That’s the part that scares the hell out of me…I’ve been operating on the assumption that the vast silent majority of folks are like my friends and I – toil away, pay our bills, raise youngsters. If I’m way off base and a good chunk of people have the attitude of these folks, I guess the ‘age of rage’ will be upon us lickety-split.
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Teresa Lo
Name a Painful Choice
David Gregory interviewed Governor Tim Pawlenty [TRANSCRIPT] in a special episode of Meet the Press Across America. He asked point blank, “Name a painful choice you would make to cut the deficit, to cut government spending. Would you cut defense spending? Would you cut social security benefits? Would you raise the retirement age for social security? I mean a painful choice that matters. Can you come up with something?”
See the answer for yourself at 27:47 into the interview.
Visit msnbc.com for breaking news, world news, and news about the economy
In summary, poor people will pay for the painful choices. In case you’re curious about taxation, check out the OECD Fact Blog on Tax: who pays what?
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The wise rule by keeping the peoples’ hearts empty (of desire) and their bellies full.
Making their bones strong and their ambitions weak.
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Eric D.
it’s called TV…
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Eric D.
How come you keep posting the on the same subject, but to new threads John? It’s almost like you want to keep making the automation trigger on the twitter bot. It’s not so that your wise words will be spread to the Smarter stops followers is it? Are you trying to be Our first Twitter Spammer, or “Twammer” in the vernacular. John the Twammer?
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John
Fat finger? Stuffed Mouse? Are you the sherif around here or what? I feel like you are trying to give me a speeding ticket or something. I just tore it up and threw it back in your face. So now what are you going to do?
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Eric D.
Just asking a question, John. You will show me.
Wiinky… you are barley lucid, So i’m not sure what you are going off about But get back to me when I care.
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John
That’s what I figured. Just down someone else. Now let me me try.. Just a typical liberal using personal attactks to avoid a true high minded debate. Yata yata yata Now you have taken a poll and are backing off your initial bluster as the poll says it ain’t going your way. Hey thats blogging I guess.
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Eric D.
WTF are you talking about…. What debate the one you never addressed? or was I supposed to address if “I’m the Sheriff”? What am I 12?
I guess you want to go back and address; If you were “Getting off” Making the Auto-send, on the Twitter account Post your nonsense? Let us hear that “High Minded” Debate!.. if you want to get BACK TO THE TOPIC.
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Eric D.
High minded… Right… I just got called a substance abuser. And you haven’t provided “Debate” in your lifetime.
You can’t stay on topic. Nor address any argument. I haven’t heard such effective repartee since grade school. I’m a constant wonder about when you will break out the “I’m rubber you are Glue.. ” argument.
oh! wait you did; in the “I’m not droning you are droning” below this thread.
That stuff is brilliant John!
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Lyle 3:34 PM on October 13, 2010 Permalink | Log in to Reply
Josh Rosner, (he describes himself as “a recovering GSE analyst”) is circulating a client note and it takes the foreclosure crisis very seriously.
http://www.nakedcapitalism.com/2010/10/josh-rosner-could-violations-of-psa%e2%80%99s-dwarf-lehman-weekend.html
Brad 3:36 PM on October 13, 2010 Permalink | Log in to Reply
Holy Explodie!