Headlines...

NEW -> Contingent Buyer Assistance Program
<p>End of rate hikes?</p>

<p>"The U.S. economy added a solid 110,000 new jobs in September and hiring in each of the two previous months was revised up significantly, the Labor Department said on Friday, showing a more resilient labor market than previously thought."</p>

<p><a href="http://www.cnbc.com/id/21146508">www.cnbc.com/id/21146508</a></p>
 
<p>So, the Fed is going to cut no matter what?</p>

<p><a href="http://www.cnbc.com/id/21149982">www.cnbc.com/id/21149982</a></p>

<p>My favorite WTF quote: (maybe of all time)</p>

<p>"<strong>The housing market just keeps getting worse despite widespread forecasts it would soon hit bottom..</strong>."</p>

<p>Please explain to me how this statement makes any sense.</p>
 
"<strong>The housing market just keeps getting worse despite widespread forecasts it would soon hit bottom..</strong>."





I think this reporter is mistaking market cheerleading for market forecasting. The only people who think we are anywhere near the bottom are some of the posters in denial over at <a href="http://lansner.freedomblogging.com/2007/10/05/late-sept-home-prices-at-april-05-level/">Lansner's blog</a>.
 
WASHINGTON (AP) -- Consumers have boosted their borrowing at the fastest pace in three months, turning increasingly to their credit cards to replace home equity loans as a source of ready cash. The Federal Reserve reported that consumer credit rose at an annual rate of 5.9 percent in August, the biggest increase since a 7.9 percent jump in May.
 
<p>So-o-o-o, what comes after credit cards? Incomes are going to rise? More mew? Equities will make everybody rich? </p>
 
Matt did a <a href="http://mortgage.freedomblogging.com/2007/10/05/consumer-debt-rises/">post about this</a> on his blog with a chart going back to August 1997. He used a different data source but it is still ugly overall. But hey that means consumers are spending. Yea!
 
<a href="http://money.cnn.com/2007/10/05/real_estate/fdic_rate_freeze/index.htm?postversion=2007100517" target="_blank">FDIC to mortgage servicers: Freeze ARM rates</a>
 
If a lender freezes the ARM rate, do they then have to mark to market the derivative paper which uses the mortgage as collateral? Did it ever occur to any of these bright bulbs that you can not give one person money without taking it from someone else?
 
The remarks are probably aimed more toward banks that service their own loans. The FDIC doesn't care so much about banks' levels of profitability as they do about the banks just staying solvent.
 
Merrill Lynch announced it would write down $5.5 billion for bad bets on subprime mortgages and leveraged loans. That's the only major Wall Street brokerage to take a loss from turmoil in the credit markets...so far...
 
<p><a href="http://www.housingwire.com/2007/10/05/mortgage-market-roundup-oct-5/">P. Jackson of housingwire</a> did a great post on Merrill in his weekly recap. Basically he shot down my theory of Merrill cutting credit lines to get the business themselves. </p>

<p>Also he has a <a href="http://www.iddmagazine.com/idd/NYTSStories/nytsstories.cfm?id=14444&issueDate=current">great article with Lewis Ranieri</a> and his take on the mortgage market. I um saved it in case you don't read it before the two weeks is up. So I can email it to you if you want it.</p>

<p>If you don't subscribe to housingwire I highly recommend that you do. He is an industry insider who happens to be a realist. He also has great contacts and gets info no one else does.</p>
 
graphrix - I tend to think that the Chinese sovereign fund could be very instrumental in causing the Hang Seng to rise for quite awhile, maybe years.
 
<p>Holy sh*t the yen is up to 117.3. Nikkei is down 25. Hang Seng is down 61. China is up 142. FTSE is down 6.5. US futures are predicting upward.</p>

<p>And the most fun Tim has ever had <a href="http://themessthatgreenspanmade.blogspot.com/2007/10/interview-with-alan-greenspan.html">is here</a>.</p>
 
It seems there are quite a few people who are not happy with the <a href="http://images.businessweek.com/ss/07/08/0802_gripe/index_01.htm">quality of the homebuilders</a>.
 
<p>Interesting take on the possiblity of another crazy month. Maybe it is the banks' turn to sweat.</p>

<p><a href="http://articles.moneycentral.msn.com/Investing/JubaksJournal/BigBanksAboutToLowerTheBoom.aspx?page=1">articles.moneycentral.msn.com/Investing/JubaksJournal/BigBanksAboutToLowerTheBoom.aspx</a></p>
 
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