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

To: CalculatedRisk who wrote (72738)	10/24/2006 12:06:34 PM
From: ild	Read Replies (1) \| Respond to of 110194

Mortgage banking is getting closer to all risk no profit business: Countrywide’s mortgage banking segment saw its pre-tax earnings fall significantly to $424 million from $630 million in Q2. Production profitability fell as a result of a GOS margin compression. GOS margins fell across all segments, but the steepest declines were felt with the subprime (202 bps to 136 bps) and home equity (195 bps to 127 bps) segments. Competitive pricing and the widening of credit spreads hurt margins in the quarter.

To: CalculatedRisk who wrote (72738)	10/24/2006 12:09:15 PM
From: John Vosilla	Respond to of 110194

Some interesting figures from that presentation jumped out. Total burden per household $411k while annual household income around $40k/ year and 91% of equity per household is eaten up by the debts. We need real growth at double digits each year to grow our way out of the mess yet growth averages slightly over 3% a year over the long haul. Inflate or die? Any wonder the Bush administration looks the other way when anyone wants to come in this country and work or never saw an expenditure it didn't approve?

To: CalculatedRisk who wrote (72738)	10/24/2006 12:11:43 PM
From: Les H	Read Replies (2) \| Respond to of 110194

Unfunded liabilities for SS and Medicare A and B would've gone up the same no matter who was in office. He gets a pass here mainly because he failed to enact his debt-funded SS package, which would've made the future liabilities much worse.