NEW -> Contingent Buyer Assistance Program
IrvineCommuter_IHB
New member
Check out Ben's letter to Schumer. .. I am imagining Ben complaining about how he needs to defend his economic policies to Schumer. . . It's kinda of like Carl Sagan having to defend his research to me. . ..
<a href="http://www.cnbc.com/id/20499687">www.cnbc.com/id/20499687</a>
<a href="http://www.cnbc.com/id/20499687">www.cnbc.com/id/20499687</a>
graphrix_IHB
New member
<p>To keep the theme going:</p>
<p class="textBodyBlack">"We will continue to keep the Congress informed of developments in the subprime markets and in the credit markets more generally. As you know, FederalReserve governors and staff have made numerous appearances before the Congress and in other forums on subprime-related issues. Board staff members have continued to brief members of Congressional staffs on these matters. Board staff members are also assisting the Government Accountability Office in the report that they are preparing that will provide a comprehensive review of developments in the subprime mortgage market."</p>
<p class="textBodyBlack">Again, thank you </p>
<p class="textBodyBlack">Ben S. Bernanke </p>
<p class="textBodyBlack">Translation:</p>
<p class="textBodyBlack">Dude are you stupid? We meet with you and the rest of your clueless cronies all the time. We have specifically stated several times that we know what we are doing. You and your fellow house members who think a government or Fed bailout is getting annoying. Your general lack of understanding of the credit markets is rather embarrassing and I suggest you check out some of the blogs on the "internets" as they seem to have a greater understanding on monetary policy. Any additional letters you send me will do you absolutely no good in changing my stance from the last time I met with congress. In fact the letters will now go straight into the shredder. You're an enviromentalist so stop killing trees and wasting ink.</p>
<p class="textBodyBlack">Again, stop sending me stupid letters. I have more important things to spend my time on. </p>
<p class="textBodyBlack">Thank you,</p>
<p class="textBodyBlack">Ben Supercopter Bernanke</p>
<p class="textBodyBlack">"We will continue to keep the Congress informed of developments in the subprime markets and in the credit markets more generally. As you know, FederalReserve governors and staff have made numerous appearances before the Congress and in other forums on subprime-related issues. Board staff members have continued to brief members of Congressional staffs on these matters. Board staff members are also assisting the Government Accountability Office in the report that they are preparing that will provide a comprehensive review of developments in the subprime mortgage market."</p>
<p class="textBodyBlack">Again, thank you </p>
<p class="textBodyBlack">Ben S. Bernanke </p>
<p class="textBodyBlack">Translation:</p>
<p class="textBodyBlack">Dude are you stupid? We meet with you and the rest of your clueless cronies all the time. We have specifically stated several times that we know what we are doing. You and your fellow house members who think a government or Fed bailout is getting annoying. Your general lack of understanding of the credit markets is rather embarrassing and I suggest you check out some of the blogs on the "internets" as they seem to have a greater understanding on monetary policy. Any additional letters you send me will do you absolutely no good in changing my stance from the last time I met with congress. In fact the letters will now go straight into the shredder. You're an enviromentalist so stop killing trees and wasting ink.</p>
<p class="textBodyBlack">Again, stop sending me stupid letters. I have more important things to spend my time on. </p>
<p class="textBodyBlack">Thank you,</p>
<p class="textBodyBlack">Ben Supercopter Bernanke</p>
Nude_IHB
New member
<p><em>It might be worth considering at this juncture whether the private and public sectors, separately or in collaboration, could help the situation by developing a broader range of mortgage products which are appropriate for low-and moderate-income borrowers, including those seeking to refinance. Such products could be designed to avoid or mitigate the risk of payment shock and to be more transparent with respect to their terms. They might also contain features to improve affordability, such as variable maturities or shared-appreciation provisions for example. One public agency with considerable experience in providing home financing for low-and moderate-income borrowers is the Federal Housing Administration (FHA). The Congress might wish to consider FHA reforms that allow the agency more flexibility to design new products and to collaborate with the private sector in facilitating the refinancing of creditworthy subprime borrowers facing large resets.</em></p>
<p>Translation: Dear Senator Numbnuts, please be so kind as to get a clue about how our economy works and address the issue with those people that are in charge of housing and mortgages. Railing on the Fed for an interest rate cut will only help those making your political campaign contributions, not the people you claim to want to "help".</p>
<p>Translation: Dear Senator Numbnuts, please be so kind as to get a clue about how our economy works and address the issue with those people that are in charge of housing and mortgages. Railing on the Fed for an interest rate cut will only help those making your political campaign contributions, not the people you claim to want to "help".</p>
Major Schadenfreude_IHB
New member
<p>LOL! Great translations!</p>
bishie_IHB
New member
The UAE and Qatar said they will not match Fed cuts downwards. China is allowing greater foreign investment which probably is a precursor to more exchange flexibility. These countries have been pursuing absolutely crazy interest rate policies to maintain their dollar peg. In the UAE's case lending rates are negative in real terms. If we look at countries like Thailand in 1997-1998 that went through a similar experience the best performing assets were foreign currencies and gold; real estate and equities hugely devalued. A currency adjustment would make our manufacturing sector more competitive which should improve GDP. Already we can see from news headlines US Manufacturing is becoming more competitive against European manufacturers. Look at the loss Ford is taking on the sale of Land Rover and Jaguar as evidence or the huge order book at Boeing.
As I see it US rate cut -> US dollar devaluation -> improved competitiveness of manufacturing
As I see it US rate cut -> US dollar devaluation -> improved competitiveness of manufacturing
IrvineRenter_IHB
New member
It might still happen. I won't believe in the durability of this rally until the market closes above its 50 day moving average for two consecutive days. We are not there yet.
graphrix_IHB
New member
<p>What is wierd to me is this is the first Friday before a three day weekend that the market was up in a long time. I can't remember the last time I wasn't picking up bargains on a day like this. </p>
<p>Did anyone read the <a href="http://www.federalreserve.gov/boarddocs/speeches/2007/20070831/default.htm">full speech</a> from Bernanke? It's been one of those days but my last stopping point was the emergence of capitial markets. After his reply to I think it was Schumner and with this speech I really felt as if he was being the academic teacher that he is. It was like ok everyone needs to review some history since everyone seems to have forgotten anything prior to 2000. I think he gets joy out of bringing up the depression with his impressive knowledge of the details of that time period. </p>
<p>Did anyone read the <a href="http://www.federalreserve.gov/boarddocs/speeches/2007/20070831/default.htm">full speech</a> from Bernanke? It's been one of those days but my last stopping point was the emergence of capitial markets. After his reply to I think it was Schumner and with this speech I really felt as if he was being the academic teacher that he is. It was like ok everyone needs to review some history since everyone seems to have forgotten anything prior to 2000. I think he gets joy out of bringing up the depression with his impressive knowledge of the details of that time period. </p>
EvaLSeraphim_IHB
New member
<p><a href="http://bigpicture.typepad.com/comments/2007/08/the-grand-chara.html">Barry</a> over at the Big Picture thought it had to do with the end of many IBanks' fiscal year, possibly, and that the timing of Bernanke's and Bush's speech were tied to that.</p>
Nude_IHB
New member
<p>[Mickey:] The whole world's coming to an end, Mal.
[Mallory:] I see angels, Mickey. They're comin' down for us from heaven. And I see you ridin' a big red horse. You're drivin' the horses, whippin' 'em. And they're spittin' and barfin' all on you now. They're coming right at us. And I see the future. There's no death 'cause you and I, we're angels...</p>
<p>The part of Mickey is being played this evening by Dick Cheney. The part of Mallory is being played by George Bush.</p>
[Mallory:] I see angels, Mickey. They're comin' down for us from heaven. And I see you ridin' a big red horse. You're drivin' the horses, whippin' 'em. And they're spittin' and barfin' all on you now. They're coming right at us. And I see the future. There's no death 'cause you and I, we're angels...</p>
<p>The part of Mickey is being played this evening by Dick Cheney. The part of Mallory is being played by George Bush.</p>
graphrix_IHB
New member
Nice a NBK quote makes sense for today.
awgee_IHB
New member
Has anybody else wondered shy Ben Stein is so insistent that the problems in the market are limited to the subprime mortgage market and why he insists that problem is tiny?<p>
Well, the following may be the reason. He is invested in Ryland Homes and has ridden it all the way down. And he says he is buying more because RYL is cheap. You would think that he has heard the expression, "Trying to catch a falling knife". I wonder how many other builder stocks and banking stocks he is holding. No wonder he is so darn upset and passionate. It sounds to me like he is trying to convince himself.
Well, the following may be the reason. He is invested in Ryland Homes and has ridden it all the way down. And he says he is buying more because RYL is cheap. You would think that he has heard the expression, "Trying to catch a falling knife". I wonder how many other builder stocks and banking stocks he is holding. No wonder he is so darn upset and passionate. It sounds to me like he is trying to convince himself.
graphrix_IHB
New member
<p>He has no idea how bad it is out there, no idea, none!</p>
<p>Have you looked at Ryland's numbers lately? That isn't just one knife it is knives falling from the sky killing everything on the way down. They have a lot of exposure to California in the areas being hit the hardest. </p>
<p>Have you looked at Ryland's numbers lately? That isn't just one knife it is knives falling from the sky killing everything on the way down. They have a lot of exposure to California in the areas being hit the hardest. </p>
bltserv_IHB
New member
<p>Speaking of Home Builders. Lennar. LEN. Looks like the debt is going to hit junk status next week. The cost to insure those bonds is just going straight up. Some big notes coming due as well. They got to be burning some serious cash with all the building they are doing locally. The stock was in the 50`s this spring and now is at Mid 20`s. Ouch. Damn Knifes</p>
<p>I used to respect Ben Stein. But he is like a old horse with blinders on. </p>
<p>I used to respect Ben Stein. But he is like a old horse with blinders on. </p>
graphrix_IHB
New member
<p>Lennar has refused to take off the rose colored glasses. I wonder if will come full circle and this time around this bust will lead to another builder taking over their projects on the cheap? </p>
<p>Damn you bltserv now I am going to have to look into their 10-Qs. </p>
<p>Damn you bltserv now I am going to have to look into their 10-Qs. </p>
Rocker_IHB
New member
<p>A gem from WSJ, words from a Bubble minted RE "Investor", of the stupid variety:</p>
<p class="times">Sazzad Khandakar, 43 years old, an information-technology manager and father of three in Monroe Township, N.J., is among the nation's distressed home investors. In early 2005, he bought a $410,000 condominium and a $390,000 newly built single-family home, both in Orlando, Fla. "Everybody around me bought an investment home in Florida," Mr. Khandakar said. "Florida was all over the news; my friends were doing it....I didn't want to miss out."</p>
<p class="times">He planned to keep the condo as a second home and sell the detached house for a quick profit. For the condo, Mr. Khandakar made a 10% down payment, but he borrowed 100% of the cost of the house, assuming that its rapid price appreciation would soon provide him with equity. Instead, prices began falling, and he has been unable to sell the home or find a tenant. Now, Mr. Khandakar said, he is behind on both loans.</p>
<p class="times">"My credit is shot for the next six or seven years," he said, and he has run through $100,000 of retirement savings. "It will take me another five to 10 years to recover that," he added.</p>
<p>
</p>
<p class="times">Sazzad Khandakar, 43 years old, an information-technology manager and father of three in Monroe Township, N.J., is among the nation's distressed home investors. In early 2005, he bought a $410,000 condominium and a $390,000 newly built single-family home, both in Orlando, Fla. "Everybody around me bought an investment home in Florida," Mr. Khandakar said. "Florida was all over the news; my friends were doing it....I didn't want to miss out."</p>
<p class="times">He planned to keep the condo as a second home and sell the detached house for a quick profit. For the condo, Mr. Khandakar made a 10% down payment, but he borrowed 100% of the cost of the house, assuming that its rapid price appreciation would soon provide him with equity. Instead, prices began falling, and he has been unable to sell the home or find a tenant. Now, Mr. Khandakar said, he is behind on both loans.</p>
<p class="times">"My credit is shot for the next six or seven years," he said, and he has run through $100,000 of retirement savings. "It will take me another five to 10 years to recover that," he added.</p>
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IrvineRenter_IHB
New member
<em>"I wonder if will come full circle and this time around this bust will lead to another builder taking over their projects on the cheap?"</em>
The company I work for is counting on it.
The company I work for is counting on it.