Second wave of mortgage defaults

[Gundini]

Has anybody been following this news regarding "Alt-A and Option Arm" loans?

http://www.cbsnews.com/stories/2008/12/12/60minutes/main4666112.shtml

Here is an extract:

"The trouble now is that the insanity didn't end with sub-primes. There were two other kinds of exotic mortgages that became popular, called "Alt-A" and "option ARM." The option ARMs, in particular, lured borrowers in with low initial interest rates - so-called teaser rates - sometimes as low as one percent. But after two, three or five years those rates "reset." They went up. And so did the monthly payment. A mortgage of $800 dollars a month could easily jump to $1,500.

Now the Alt-A and option ARM loans made back in the heyday are starting to reset, causing the mortgage payments to go up and homeowners to default."

They are predicting another Trillion dollars to go down the gurgler over the next couple of years!

Is the worlds biggest consumer imploding and going to take the rest of the planet with them?

Can we just ignore the US true position, and expect their Gov. to fix these debarkles by printing money and throwing it in the streets?

Is there now any other option than to re-inflate the asset bubble?

"What a mess Mr Hart"

 

[kransky]

I watched a youtube video on this last night... apparently 2009 will see less mortgage resets than 2008, but then 2010 and 2011 will be same level as 2008..

Yes just print more money...

after watching the video i found a few video's on the new Amereo... people are saying that it started being printed in 2007. And one guy even had one..

 

[Farang]

after watching the video i found a few video's on the new Amereo... people are saying that it started being printed in 2007. And one guy even had one..

Was that the clip where the guy tapped the metal coin on the bench? If so it was a fake, a real coin but a collectable one. Wikipedia has something on it.

Just more scare mongering... or govenrment cover up?

 

[Lancelot]

And one guy even had one..

Hal Turner has some

 

[Lancelot]

I watched a youtube video on this last night... apparently 2009 will see less mortgage resets than 2008, but then 2010 and 2011 will be same level as 2008..

Heres a picture

 

[kransky]

yeah it was hal turner... banging it on the table...

who knows if its true.. but it sounds plausible given what is going on..

 

[GumbyLearner]

yeah it was hal turner... banging it on the table...

who knows if its true.. but it sounds plausible given what is going on..

Well I certainly have.

Here's a link I posted on ASF last week.

http://www.youtube.com/watch?v=iUuROWEMjm0

Here's another I posted last week also.



http://www.youtube.com/watch?v=MzH62hUua3s&NR=1

Also check out Glen48's post for some other fun tunes and posts. :

The American mortgage market is completely roo*ed. First, it was the over-leveraged financials with there toxic loans. Now with unregulated handouts from the FED, then the liars that took them to keep up with Mr and Mrs Jones the housing industry and now the US autos.

Im wondering ,now that Toyota has reported a $1.7 Billion loss, its first and only loss in 71 years then is it logically conceivable that many credit consumers have literally hit the wall unlike any other time in a generation?
I mean they (Toyota) have a sound business right??
The question is do Western countries have sound lending practices?

 

[Lancelot]

yeah it was hal turner... banging it on the table...

who knows if its true.. but it sounds plausible given what is going on..

And Hal Turner is.........................

Harold "Hal" Turner is an American white nationalist and white supremacist from North Bergen, New Jersey. He ran his program, The Hal Turner Show, as a webcast from his home once a week, and depended on donations by his listeners. He quit the show in July 2008. In August his website also closed down, though he retains a blog.

Turner has often made news for his extreme right-wing views. He promotes antisemitism (including rounding up and killing Jews)[1] and opposes the existence of the state of Israel.[2] He also denies the Holocaust.[3] In 2005, Turner organized what he billed as a "rally against violence" after a white student was beaten by a black student at a high school. In 2006, he got in a fight with Jaime Vazquez, a former Jersey City deputy mayor, after Vazquez called him a racist coward. Turner has made numerous threats against political figures on his website and in other forums.

http://en.wikipedia.org/wiki/Hal_Turner

 

[IFocus]

I believe some of the resets will actually reset to lower interest rates

 

[Lancelot]

I believe some of the resets will actually reset to lower interest rates

Good point