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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Pogeu Mahone who wrote (91604)	10/9/2007 8:27:48 AM
From: Think4Yourself	Respond to of 306849

Cerberus has made a series of serious financial blunders lately. Buying GMAC, buying Chrysler, and appointing Nardelli to lead Chrysler down the tubes. I STILL can't believe they picked Nardelli to lead Chrysler.

To: Pogeu Mahone who wrote (91604)	10/9/2007 3:19:23 PM
From: patron_anejo_por_favor	Respond to of 306849

Sounds like the 3-headed hellhound bit off more than it can chew, HO HO HO!

To: Pogeu Mahone who wrote (91604)	10/10/2007 4:04:15 PM
From: Perspective	Respond to of 306849

<ResCap jumped aggressively into subprime back in 2003. Today such risky mortgages account for 71% of its $62.7 billion loan portfolio. In ResCap's holdings, delinquent loans (those more than 60 days past due) spiked to 15.5% of the mortgages' outstanding balances as of June 30, from 13.7% a quarter before. ResCap has also lost 18 cents for every $100 of the subprime loans made in 2005 and 2006 that it owns, vs. the industry average of 12 cents, according to Fitch Ratings Ltd.> Holy Cow! They are in it, and deep! 71% in subprime! They've managed to singlehandedly corner a fair percentage of the toxic subprime slime out there. So GM isn't on the hook for any more cash to the business? But they still hold 49% stake, right? Does their agreement with Cerebrus stipulate no additional capital infusion? I don't understand how they can own 49% and not have any negative cash flows from the business if it has further losses. Has GM really worked a deal such that they only share in the gains but none of the losses going forward? BC