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 Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (73567)	3/10/2007 6:05:14 PM
From: Dan3	Read Replies (1) \| Respond to of 306849

$6.5 Trillion with a "T" in mortgage securities? From the article you posted: The issuance of mortgage-related securities, which include those backed by home-equity loans, peaked in 2003 at more than $3 trillion, according to data from the Bond Market Association. Last year’s issuance, reflecting a slowdown in home price appreciation, was $1.93 trillion, a slight decline from 2005. The $4 Trillion in mortgage securities created in 2005/2006 are ~1/3 sub prime or Alt-A mortgage based. If this starts to unwind then something like $1.5 Trillion in wealth will disappear in the next year or so. Mish's deflation scenario is looking more likely. Puts a new perspective on what's at risk. The scum bond traders who perpetrated this fraud just gave themselves $24 Billion with a "B" bonuses for cheating bond buyers by selling this trash paper as though it were a safe investment. google.com

To: bentway who wrote (73567)	3/10/2007 7:28:43 PM
From: saveslivesbyday	Respond to of 306849

BS Analyst, Brokerages, Moody's, all in cahoots. Tisk, tisk... this reinforces why I am a bear - I'm just riding the karmic waves which are a backlash from surges of greed, moral compromise and unethical behavior over the past several years.

To: bentway who wrote (73567)	3/11/2007 8:21:05 AM
From: George K.	Respond to of 306849

The Mortgage Crisis and bond meltdown is nigh. The reaction from Morgenson's article is going to be huge. There's simply too much suspicion about the levels of securitizations above the bottom rung. Geo

To: bentway who wrote (73567)	3/11/2007 10:25:55 AM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 306849

Mortgages requiring little or no documentation became known colloquially as “liar loans.” An April 2006 report by the Mortgage Asset Research Institute, a consulting concern in Reston, Va., analyzed 100 loans in which the borrowers merely stated their incomes, and then looked at documents those borrowers had filed with the I.R.S. The resulting differences were significant: in 90 percent of loans, borrowers overstated their incomes 5 percent or more. But in almost 60 percent of cases, borrowers inflated their incomes by more than half. OR, they lied on their tax return, an equally likely possibility I'd say.