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

To: Live2Sail who wrote (41256)	9/14/2005 1:46:12 AM
From: Live2Sail	Respond to of 110194

I'll repost this. This is from Barry Ritholtz of the Maxim group and thestreet.com. Apologies if it's been posted. Can someone some depth or detail about what it means? Sounds ominous. ----- I've been exchanging e-mail with a friend who is in Boston for the first mortgage banking conference since Katrina hit. During a breakout session on the topic of loss mitigation, there was an opportunity for some of the major players in the country -- including Freddie Mac -- to assess Katrina/NOLA fallout. At least one major lender declared that ALL of its secured properties in the region are abandoned, and it is in the process of filing claims on ALL of those loans. Every one. Also of note: "Rumor has it that another larger lender is currently considering the devaluation of some of its portfolios. Issues related to interest advanced by government investors (measured in the hundreds of millions on a monthly basis) and the effects on securitization and bond rating are expected to have a substantial impact on the financial markets." His quote of the day: "The tension was palpable." I'd be curious as to what others on the site think may be the vulnerable banks, mortgage underwriters, insurers, and any other names that come to mind. Or, will they be bailed out by the government or (re)insurers. Regardless, there will be some astounding writedowns.