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NEW -> Contingent Buyer Assistance Program
<p>From Reuters.</p>

<p>Loan cos. to ease terms on some Calif. mortgages


<a href="http://www.reuters.com/article/marketsNews/idLTAN2063442720071121?rpc=44">http://www.reuters.com/article/marketsNews/idLTAN2063442720071121?rpc=44</a></p>

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It seems like every time I read about the large number of foreclosures coming down the pike in the MSM, the writer always mentions that it is a better move financially for the lender to "work something out" or "renegotiate" the loan instead of foreclosing. If it really is better for the lender to option something other than forclosure, would the lenders really need any prodding from the government or any consumer orgagnizations or state governers? The last time I looked the lenders were for profit organizations and will do what is in their best interest.
 
<p><strong>No Holiday for Bears</strong> </p>

<p>"Stocks sliding early Wednesday, as oil hit a record high, the dollar continued its downward spiral and traders sought safety in bonds. </p>

<p>The <strong>Dow Jones Industrial Average</strong> was sinking 117 points to 12,893, and the <strong>S&P 500</strong> was off 13 points at 1427. The <strong>Nasdaq</strong> was tumbling 29 points to 2568. </p>

<p>At the same time, U.S. Treasury securities were rallying, pulling down yields. The 10-year note was up 22/32 in price, yielding 4.01%, a level not seen in two years. The 30-year bond was adding 20/32, yielding 4.46%. </p>

<p>Meanwhile, crude futures reached a record $99.29 a barrel overnight, oil's first time above the $99-a-barrel mark. Recently, crude was up 45 cents from the last settlement price to $98.48 a barrel. </p>

<p>The dollar lost ground against the euro and the yen on fears that credit market woes and higher energy costs will cause economic growth in the U.S. to slow. </p>

<p>Both higher oil prices and a weakening dollar become more worrisome for traders in light of Tuesday's release of the minutes from the October <strong>Federal Reserve</strong> policy meeting." </p>

<p><a href="http://www.thestreet.com/_yahoo/s/no-holiday-for-bears/markets/marketstory/10391203.html">www.thestreet.com/_yahoo/s/no-holiday-for-bears/markets/marketstory/10391203.html</a></p>

<p>Glad to see all you guys working today Just happy news all the way around.</p>
 
<p>Yeah, awgee, but the "Owners" in the lower tranches have a different interest than in the highest tranches. The AAA and AA folks could care less; I understand they got paid off unless the pool becomes totally worthless. The lower and middle grade people would prefer to get something rather than nothing. </p>

<p>So even if, overall, less would be lost, it may not happen because of the AAAs.</p>

<p>How you do an Ayn Randian analysis on that I don't know, because you also have a possibility of ruination of the housing stock due to looters, teenagers, uncared for natural deterioation, meth labs, etc. Somebody is eventually going to be suing somebody about that!! </p>

<p>Also, libertarians are supposed to not do damage to other peoples' stuff, and wrecking a house (to no purpose either) does damage to the neighbors and the neighborhood.</p>
 
<p>Local politicians now trying to save their jobs.. . .</p>

<p><a href="http://news.yahoo.com/s/ap/20071121/ap_on_bi_ge/mayors_foreclosures">news.yahoo.com/s/ap/20071121/ap_on_bi_ge/mayors_foreclosures</a></p>

<p><strong>Mayors to meet about rising foreclosures</strong></p>

<p>"DETROIT - This city at the heart of an area that is among the nation's hardest hit by rising foreclosures will host a meeting of mayors from across the country next week to address the nation's housing crisis."</p>

<p>"The goal is to create policy recommendations to present at a Conference of Mayors meeting in January, Kilpatrick said.</p>

<p>Next week's gathering is closed to the media, but the mayors plan to release a report on the economic ripple effect of foreclosures on U.S. metropolitan areas, with a focus on cities in Arizona, California, Florida, Indiana, Michigan, Nevada and Ohio, which have some of the nation's highest foreclosure rates.</p>

<p>Mayors expected to attend include Jerry Abramson from Louisville, Ky., and Michael Coleman from Columbus, Ohio, who both are scheduled to speak about ways to prevent foreclosures from hurting neighborhoods. Organizers say Elaine Walker of Bowling Green, Ky., Richard Kaplan of Lauderhill, Fla., Brenda Lawrence of Southfield, Mich., and Douglas Palmer of Trenton, N.J. — president of the mayors group — also plan to be there."</p>

<p> </p>
 
<p>I see the future, and it's ugly: <a href="http://money.cnn.com/2007/11/16/real_estate/suprime_and_crime/index.htm?postversion=2007111908">Crime Scene: Foreclosure</a></p>

<p><em><strong> "Long-time Slavic Village resident Joe Krasucki had celebrated his 78th birthday last spring, when, late in the evening, he heard some noise and went out for a look. Reports said he'd had run-ins with local gangs before. A neighbor's abandoned house had already been stripped of its aluminum siding and, according to Rokakis, Krasucki thought the looters were back, working on his home. Outside, he was attacked and badly beaten. He died some days later."</strong></em></p>

<p>I don't much about Cleveland, but I can't imagine their gangs are any different than LA/OC gangs. As a confirmed doom-and-gloom kind of guy, I suspect that the West Coast is going to see a spike in forcible recycling as more and more homes become empty. Maybe we should start an early retirement fund for Trooper </p>
 
<p>Oh, damn. </p>

<p>







<a href="http://us.lrd.yahoo.com/_ylt=Ago2IqEV_Zbx4z.CLn9uPlu7YWsA/SIG=11ch9s167/**http%3A//finance.yahoo.com/q%3Fs=USDJPY=X">USD to JPY</a>

108.53 ¥







</p>
 
<p>Nude, reminds me of the documentary on PBS last night about Picher, Oklahoma. Baiscally, in Picher, a 40 square mile area is a superfund cleanup site due to heavy metal and lead contamination from the slag piles of mining detritus. The whole area is litered with giant hills of literally mining refuse gravel (chat). I consider it slag even though its non-smelted. And yet, many of the resident's fight to stay, even though their properties are dilapidated and valueless. </p>

<p>Are many poor, sure. Some aren't, they have enough to have a new sand rail for climbing the slag piles and dune buggying through them.</p>

<p>I just don't get it. The area is literally killing your kids, giving you a vareity of illnesses as evidence by the variety of older people that have growths evident, and yet, they want to keep everybody there.</p>

<p>Here's a link to the PBS show: <a href="http://www.pbs.org/independentlens/creekrunsred/?campaign=pbshomefeatures_5_independentlensbrthecreekrunsred_2007-11-21">http://www.pbs.org/independentlens/creekrunsred/?campaign=pbshomefeatures_5_independentlensbrthecreekrunsred_2007-11-21</a></p>

<p>And yes, those are the miling chat piles.</p>
 
<p>And so the recession begins...</p>

<p>"That $3.20 latte at Starbucks or the $300 handbag at Coach may no longer be affordable luxuries. Feeling squeezed by gas prices and weak credit, the nation's shoppers are increasingly trading down to lower-price stores or cheaper items."</p>

<p>http://news.yahoo.com/s/ap/20071121/ap_on_bi_ge/holiday_shopping_4</p>
 
<p>How big is this house of cards? <a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=a58EF32GpHeg&refer=home">$516,000,000,000,000.00 in Global Derivitives as of 6/30/07</a></p>

<p>As the initial credit crunch hit in July, I think the growth in derivitives stopped then. If that's correct, then we can put a number on the problem. Mind you, I can't actually comprehend 516 trillion dollars; my brain simply isn't wired that way. But if mortgages led to securities, securities led to CDO's and CLO's and CDS', CDS/L/O led to more investment by SIV's, Hedge Funds, IB's, etc., and the money pumps just kept inflating the balloon... *head asplode*</p>

<p>Happy T-Day!</p>
 
<p>Gack. Isn't this what awgee was talking about a couple of days ago.</p>

<p>Not cooking yet because hub bought a frozen bird.</p>

<p>Happy T-Day everyone.</p>
 
Re Nude's post. The collateral backing the $516 tril is not just mortgages. I don't remember what portion is mortgage based, including all the CDOs and CDSs leveraged on mortgages, but the greater portion is collateralized with CLOs and other assets which were not checked to see if they were collateralized against any other leveraged paper or were sold.<p>


I figure most folks who read a number like $516 tril just blow it off because it is too large to comprehend and they figure someone is taking care of it. That is how I used to think of it. But, after reading about it for the last couple of years, I realize it is a large Ponzi scheme which will eventually collapse and take the innocent with it. I hope I am wrong.
 
<p>What I want to know is, is that number some sort of dead loss? Monopoly money? Something that, with time, can unwind? If so, that's a good reason to drag things out, rather then just get the pain over with.</p>

<p>Something that will cause losses only to the players involved?</p>

<p>Somehow, I doubt that.</p>
 
<p>Ok, the national debt is only 9.1 trillion dollars. Whew, glad to get that straight. Actually, given that 500 trillion dollar figure we are bandying about, that is actually not so terrible. As Dirksen said, updated, a trillion here, a trillion there, and soon you are adding up to real money!</p>

<p>So the mtg mess, adds up to about 11% of the national debt, and we did it to ourselves. The regulators were missing in action, so this was done in a Randian laissez-faire world. Not to mention all the derivatives of various shades. I can't get my mind, which is a very practical one around what they are; they are just so abstract. If you say they are a side-bet, why would the innocent be hurt? The betters will lose big and so will their haberdashers, but how does this hurt, say, me?</p>
 
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