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<a href="http://tinyurl.com/2qbnb6"><strong>Alt-A delinquencies continue to rise</strong></a>





NEW YORK (AP) - Delinquencies on alt-A mortgages pooled into securities between 2005 and 2007 continue to rise, Standard & Poor's said in a report released Wednesday.





Mortgage-backed securities are pools of mortgages combined and sold to investors. Alt-A mortgages are loans given to customers with minor credit problems or who do not have enough documentation to receive a traditional, prime loan.





For securities rated by S&P in 2005, 11.7 percent of current outstanding balances were delinquent in February, a 6.4 percent increase from the previous month.





About 15.9 percent of securities rated in 2006 were delinquent in February, a 9.7 percent increase from January.





Delinquencies for securities rated in 2007 increased 14.3 percent in February to about 10.2 percent.





S&P said seriously delinquent loans -- loans at least 90 days past due, in foreclosure or homes owned by banks -- continued to rise in February for all three vintages as well, with 2006 deals performing the worst. About 10 percent of 2006 loan volume was seriously delinquent at the end of February.
 
<p>B-52 Ben better hurry if he is going to get in front and stop these dominos.</p>

<p><a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aBKpwYoyhbjk&refer=home">http://www.bloomberg.com/apps/news?pid=20601087&sid=aBKpwYoyhbjk&refer=home</a></p>

<p> </p>
 
Since are parties to this steaming pile of excrement are essentially bankrupt, I hope all the Wall Street attorneys are getting huges retainers to work on this stuff.
 
<p><strong>Oh ... My ... Gosh !</strong></p>

<p>Lehman says the reason they went to the discount window was because Lehman wanted to try it out and know how to do it.</p>

<p>And the best part: Maria Bartiromo reports it with a straight face.</p>
 
<p>Another domino; my they are falling quickly now.</p>

<p><a href="http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aelEnkvIESkg">http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aelEnkvIESkg</a></p>

<p> </p>
 
<p>So the Long Term whatsis people are not homeless on the street or flipping bergers, but managing billion dollar funds?</p>

<p>Gosh, I guess I haven't screwed up enough in life to be put in charge of all that money!</p>
 
<p>Oh, well, that is hardly anything. As Dirksen said a long time ago, a billion here and billion there, and eventually it adds up to real money.</p>

<p>Gosh, that is exactly the same amount that it rustled up from a bunch on institutions last week. Do you suppose.....?</p>
 
<p>awgee-</p>

<p><a href="http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/19/bcnrumour419.xml">http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/19/bcnrumour419.xml</a></p>

<p> </p>
 
Eh, hat tip interfluidity for this, and sorry for being a snarky bastard...





<p><a class="title_link" href="http://www.interfluidity.com/posts/1205997488.shtml">Credit Crisis for Kindergarteners</a></p>

<p>David Leonhardt <a href="http://www.nytimes.com/2008/03/19/business/19leonhardt.html?hp=&pagewanted=all">notes</a> that it's pretty hard to explain what's going on in the financial world these days (ht <a href="http://www.portfolio.com/views/blogs/market-movers/2008/03/20/extra-credit-thursday-edition">Felix</a>). Here's how I'd tell the tale to a child:</p>

<p>Alice, Bob, and Sue have ten marbles between them. Whenever one kid wants another kid to take over a chore, she promises a marble in exchange. Alice doesn't like setting the table, so she promises Bob a marble if he will do it for her. Bob hates mowing the lawn, but Sue will do it for a marble. Sue doesn't like broccoli, but if she says pretty please and promises a marble, Bob will eat it off her plate when Mom isn't looking.</p>

<p>One day, the kids get together to brag about all the marbles they soon will have. It turns out that, between them, they are promised 40 marbles! Now that is pretty exciting. They've each promised to give away some marbles too, but they don't think about that, they can keep their promises later, after they've had time to play with what's coming. For now, each is eager to hold all the marbles they've been promised in their own hands, and to show off their collections to friends.</p>

<p>But then Alice, who is smart and foolish all at the same time, points out a curious fact. There are only 10 marbles! Sue says, "That cannot be. I have earned 20 marbles, and I have only promised to give away three! There must be 17 just for me."</p>

<p>But there are still only 10 marbles.</p>

<p>Suddenly, when Bob doesn't want to mow the lawn, no one will do it for him, even if he promises <em>two</em> marbles for the job. No one will eat Sue's broccoli for her, even though everyone knows she is promised the most marbles of anyone, because no one believes she will ever see those 17 marbles she is always going on about. In fact, dinnertime is mayhem. Spoons are placed where forks should be, and saucers used for dinner plates, because Alice really is hopeless in the kitchen. Mom is cross. Dad is cross. Everyone is cross. "But you <em>promised</em>," is heard over and over among the children, amidst lots of stomping and fighting. Until recently, theirs was such a happy home, but now the lawn is overgrown, broccoli rots on mismatched saucers, and no one trusts anyone at all. It's all a bit mysterious to Dad, who points out that nothing has changed, really, so why on Earth is everything falling apart?</p>

<p>Perhaps Mom and Dad will decide that the best thing to do is just buy some more marbles, so that all the children can make good on their promises. But that would mean giving Alice 19 marbles, because she was laziest and made the most promises she couldn't keep, and that hardly seems like a good lesson. Plus, marbles are expensive, and everyone in the family would have to skip lunch for a week to settle Alice's debt. Perhaps the children could get together and decide that an unmet promise should be worth only a quarter of a marble, so that everyone is able to keep their promises after all. But then Sue, the hardest working, would feel really ripped off, as she ends up with a much more modest collection of marbles than she had expected. Perhaps Bob, the strongest, will simply take all the marbles from Alice and Sue, and make it clear than none will be given in return, and that will be that. Or, perhaps Alice and Bob could do Sue's chores for a while in addition to their own, extinguishing one promise per chore. But that's an awful lot of work, what if they just don't want to, who's gonna force them? What if they'd have to be in servitude to Sue for <em>years</em>?</p>

<p>Almost whatever happens, the trading of chores, so crucial to the family's tidy lawns and pleasant dinners, will be curtailed for some time. Perhaps some trading will occur via exchange of actual marbles, but this will not be common, as even kids see the folly of giving rare glass to people known to welch on their promises. It makes more sense to horde.</p>

<p>A credit crisis arises when many more promises are made than can possibly be kept, and disputes emerge about how and to whom promises will be broken. It's less a matter of SIVs than ABCs.</p>

Steve Randy Waldman — Thursday March 20, 2008 at 3:18am
 
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<p>Headline from the OC Register:</p>

<p><strong>Recent equity market action does a great job of making Adam feel like jackass!</strong> (story inside)</p>
 
<p><a href="http://news.yahoo.com/nphotos/Top-Stories-Photos/ss/705;_ylt=Au3SfRIQvJyDrFPiY.ZNgtSMKsMA/im:/080320/480/6150f21c97bb4f578726892a440b48b6/">http://news.yahoo.com/nphotos/Top-Stories-Photos/ss/705;_ylt=Au3SfRIQvJyDrFPiY.ZNgtSMKsMA/im:/080320/480/6150f21c97bb4f578726892a440b48b6/</a></p>

<p class="caption" id="photoCaption">National map shows zip codes flagged by major mortgage insurers where they won't insure loans for investment properties, adjustable rate or interest only mortgages, and buyers making down payments of less than 3%.</p>

<p class="caption"> </p>

<p class="caption">California is almost entirely painted. Wow.</p>
 
<a href="http://tinyurl.com/34zrrw"><strong>Report: Alt-A Delinquency Rate Nearing 18 Percent</strong></a>





Nice graph with the story showing the resets:





"The swift deterioration in Alt-A mortgages is taking place despite a low level of adjustable-rate Alt-A mortgages actually hitting a reset in the current period. The graph below, from the Clayton report, provides a look at Alt-A reset volume by month — <strong>note that very few Alt-A borrowers are staring down a pending reset throughout 2008. Yet they are defaulting in droves anyway</strong>."





<a href="http://www.housingwire.com/wp-content/uploads/2008/03/infront_altaresets.gif" target="_blank"><img width="500" height="224" src="http://www.housingwire.com/wp-content/uploads/2008/03/infront_altaresets.gif" alt="" /></a>


<em>


Also from the story:</em>





"While non-industry media are incorrectly and inexplicably zeroing in on rate resets as the driver behind the recent spike of Alt-A borrower defaults, <strong>most industry experts that have spoken with Housing Wire have suggested that as many as 70 percent of Alt-A loans originated in recent years have been fraudulent.</strong>"
 
<p>Why is the interior of Florida still unpainted. I know personally that some the interior counties are screwed also.</p>

<p>Orlando is non-horrible, so it might not be included. Which is not to say that it is GOOD. Hmm, hard to tell, maybe Orlando is included, upon 2nd look.</p>
 
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