Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (192053)	9/15/2002 2:03:14 PM
From: orkrious	Respond to of 436258

Taylor On US Markets & Gold gold-eagle.com

To: ild who wrote (192053)	9/15/2002 10:00:19 PM
From: reaper	Respond to of 436258

<<any analysis of MGIC warning>> they are a bunch of scumbags?? <g> seriously, did not even see it. will look at it tomorrow AM (just too late now). will be interesting to see if it has anything to do w/ that subprime JV they have. Cheers

To: ild who wrote (192053)	9/16/2002 10:07:14 AM
From: ild	Respond to of 436258

Global: The Great Global Policy Conundrum Stephen Roach morganstanley.com

To: ild who wrote (192053)	9/16/2002 10:09:51 AM
From: reaper	Read Replies (3) \| Respond to of 436258

sorry about my flippant response earlier they seem to have a delinquency problem. and also a greater and greater percentage of their business is coming from sub-prime borrowers, which i imagine people will not like. check out the default rates on the sub-prime side. 11.11% of 19,500 sub-prime loans were delinquent in June. now its 11.57% of 21,575 loans. so the number of delinquent loans is up over 15%, from 2,166 to 2,496. i'd also point out the growth rate on the sub-prime side. up 10.6% in only two months. 40% of net new business is sub-prime. yeah, they might now how to price it, but that is dangerous stuff they are playing with. i am also going to re-iterate my opinion that there should not be a sub-prime lending industry. for MTG to make money in a 12% default environment, sub-prime borrowers have to pay insanely high rates for interest and mortgage insurance. it is ridiculously costly for the 88% of sub-prime borrowers who do make their payments to subsidize those who don't. so much so that the only ones gaining anything out of this whole arrangement are the defaulters and the providers of credit; the sub-prime borrowers who actually DO pay are having what little wealth they have stolen from them. Cheers