Headlines...

NEW -> Contingent Buyer Assistance Program
<blockquote>By 1999, the Gramm-Leach-Bliley Act rolled back Depression-era restrictions, allowing banks, brokerage firms and insurers to merge into financial holding companies that would be regulated by the Fed. </blockquote>


I can remember being in MBA school when this happened. I remember shaking my head and asking "Why is this necessary?" About the same time we deregulated the power market in California.



How'd that deal work out, anyway?



And the airlines, how have they been since deregulation? I mean service is so much better to the end consumer, especially if you fly out of Fresno of one of the fringe markets.



Next up: the "shadow" market in the oil markets.
 
OC Toll road traffic down 10% in May. Unprecidented.



<a href="http://gas.freedomblogging.com/2008/06/23/oc-tollroad-use-down-10-in-may/">http://gas.freedomblogging.com/2008/06/23/oc-tollroad-use-down-10-in-may/</a>
 
<a href="http://www.nytimes.com/reuters/business/business-merrill-research-bofa.html?dbk">BofA Sees $3.5 Billion Writedown At Merrill, $7 Billion At UBS</a>



Looks like Merrill and UBS are headed for another trip to the confessional. How long until they announce that this is the last of the big writedowns?
 
Here's a big <em>told ya so...</em>

<a href="http://www.bloomberg.com/apps/news?pid=20601109&sid=aLs42yf_aFfg&s=polyhoo">Fannie, Freddie Fail to Relieve Jumbo Loan Pressure </a>



June 24 (Bloomberg) -- Three months after Fannie Mae and Freddie Mac won the freedom to step up home-loan purchases, the government-chartered mortgage-finance companies are doing what critics in the Federal Reserve and Congress had predicted.



Instead of using powers granted by Congress to buy jumbo loans for the first time, Freddie Mac and Fannie Mae are purchasing their own mortgage-backed securities, helping reduce losses, company filings show. The large loans, above $417,000, made up almost a third of the U.S. market last year, according to the Mortgage Bankers Association.
 
[quote author="profette" date=1214369612]Here's a big <em>told ya so...</em>

<a href="http://www.bloomberg.com/apps/news?pid=20601109&sid=aLs42yf_aFfg&s=polyhoo">Fannie, Freddie Fail to Relieve Jumbo Loan Pressure </a>



June 24 (Bloomberg) -- Three months after Fannie Mae and Freddie Mac won the freedom to step up home-loan purchases, the government-chartered mortgage-finance companies are doing what critics in the Federal Reserve and Congress had predicted.



Instead of using powers granted by Congress to buy jumbo loans for the first time, Freddie Mac and Fannie Mae are purchasing their own mortgage-backed securities, helping reduce losses, company filings show. The large loans, above $417,000, made up almost a third of the U.S. market last year, according to the Mortgage Bankers Association.</blockquote>
Hoowoodathunkit?
 
<a href="http://emac.blogs.foxbusiness.com/2008/06/24/the-answer-to-when-the-writedowns-end/">The Answer to When the Writedowns End</a>



<blockquote>And that means the markets won?t see a halt in Wall Street writedowns or loan defaults until 2011. Is that when housing, and the financials, will find their bottom?</blockquote>


Sounds like they have finally started listening to what people on IHB have been saying.
 
There is a section on a local tv news show called Help Me Howard, where Howard

listens to problems of various kinds and then offers a solution. He gets to twist

arms too, since the companies involved don't want bad publicity.



Ok, last nite was a nice young couple with a toddler, in a Miami condo--which they

COULD afford, and were faithfully making payments on. But half the owners were in

foreclosure, or for some other reason weren't making their maintenance payments.

The other half were trying to keep up, but the couple just couldn't any more.



They kept getting $1000 a month special assessments, even so the insurance wasn't paid

and so the building no longer had insurance. They just couldn't make the huge

special assessments any more.



Howard couldn't figure anything for them to do. The banks have a lot to be guilty

about here, since they typically don't pay maintenance except when forced by

a assn foreclosure.



So this couple is going to walk, in spite of the fact that they can afford their

mtg payments, and lose their credit and everything.



To me, this story shows we are close to the end of the road. Housing apocalypse.

This has got to be just the tip of the iceberg. Any similar stories from IHB-land?
 
I keep wondering when the s will hit the fan for the HOAs.



I guess it will hit first for all the complexes around South Coast.



Kinda throws those 120x GRM calculations off for the investor if you are going to get hit with $1000 assessments to make up for the banks not paying. Or if the maintenance of the community goes downhill so that people don't want to rent your investment condo.



Will it hit the big HOAs in Irvine?
 
[quote author="freedomCM" date=1214387952]Will it hit the big HOAs in Irvine?</blockquote>


<img src="http://i24.photobucket.com/albums/c2/Davis1950/Cartoons/BearsInWoods.jpg" alt="" />
 
<a href="http://www.nytimes.com/2008/06/26/business/26econ.html?ref=business">New-Home Sales Fell Again in May </a>



<img src="http://graphics8.nytimes.com/images/2008/06/25/business/0626-biz-web-ECON-HomeSales.gif" alt="" />
 
[quote author="awgee" date=1214451131]No one ever seems to bad mouth oil speculators when they lose money.</blockquote>


Speculators are one thing, but there were a lot of people who were just too trusting and too ignorant to read the fine print who were convinced to do something that was financial suicide. I think a lot of good people who lack financial saaviness got taken over the coals and that's just plain wrong. I'm filled with sadness when I hear some of these stories that others callously disregard because they should have known better. The problem is that those who did know better and could have stopped the madness didn't do anything. It was obvious way before the bust that fraud and abuse were rampant and that the lax underwriting was producing toxic loans that would eventually hurt ALL of us. I hope Mozillo ends up a poor man in a cell.
 
While I am empathetic to your position, if you read my post again, you will see I refered to <strong>OIL</strong> speculators. It seems the MSM and so many others are complaining about speculators making money and driving up the price of oil, and it is my experience that no one notices or cares when speculators lose money speculating in the commodities market. Doesn't that seem odd?
 
Indymac is toast



INDYMAC BNCP INC

(NYSE: IMB)



After Hours: 1.11 Up 0.03 (2.78%)6:31PM EThelp

Last Trade: 1.08

Trade Time: Jun 25

Change: Down 0.15 (12.20%)

Prev Close: 1.23

Open: 1.30

Bid: N/A

Ask: N/A

1y Target Est: 2.96

Day's Range: 1.08 - 1.30

52wk Range: 1.08 - 31.50

Volume: 4,596,683

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Market Cap: 108.96M

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EPS (ttm): -11.12

Div & Yield: 1.00 (77.50%)
 
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