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.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (35638)	7/8/2005 8:55:07 PM
From: ild	Respond to of 110194

<<<Is it possible that the house/ATM is running out of cash?>>> NO. The Fed has plenty of cash. -g- If you refer to NEW's negative growth it may be just increased competition from other bigger players. Lender's margins on subprime loans have been steadily going down. Spoke yesterday with a local realtor. I asked: how do people buy expensive houses. Answer: Option ARM program. For example this one: erate.com As you see it's in fact a negative amortization loan. I asked: how do banks qualify people? Do they use NegAm or some other payment. Answer: Stated income loans. No questions asked. Some banks have no penalty for stated income loans, other charge extra 1/8%.

To: Ramsey Su who wrote (35638)	7/13/2005 5:26:12 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

Sandicor on San Diego's June activity, listings continue to surge, sales huffing and puffing to keep up. Listing to sales ratio, 1H, 2004 was 1.76, 2H, 2005 was 2.12. sandicor.com Keep in mind that the indexes at the beginning of June that most of these toxic California mortgages are tied to was 3.33 on the 1 year CMT and 3.78 on the 1 Libor. Today (July 13)those indexes are 3.60 and 4.02 respectively. Can't imagine these higher rates aren't fading things even more. Plus more and more teasers and 2/28 IO toxics are being reset as each month goes by. This will just build and build, until viola, blow through, and wake up call!