Wall Street hides impact of sub-prime mortgage meltdown

Wall Street hides impact of sub-prime mortgage meltdown

www.inteldaily.com

* Statistics for the three major government mortgage agencies show the spike in mortgage lending began in the mid 1980s. Total volume for GNMA, FNMA and FHLMC stood at $370 billion in 1985; it grew to $1 trillion in 1990, $2.5 trillion in 2000 and will reach an estimated $4.1 trillion by the end of 2007.

* According to the Mortgage Bankers Association, total mortgage origination for 2006 was around $2.5 trillion.

(visit the link for the full news article)


Related News Links:
www.reuters.com
www.bloomberg.com

Related AboveTopSecret.com Discussion Threads:
Billions in Put Options purchased betting that the market will crash (UPDATE: CALL MADE?)

Mod Edit: Removed copy/paste over the 500 character limit.

[edit on 4-9-2007 by UM_Gazz]

Maybe this is what that strange option activity was about. This is the first time i've ever been to that site, and I don't know what its bias is, so if anyone is familiar with it i'd like to know. After reading through the article it looks like some of the big boys in the banking world may be doing some hanky panky with the books.

On another note, I took a look at the end of month legal notices in my local paper this past friday. There were pages and pages of forclosures and bankruptcies and I live in a county of less than 100,000 people, that has a new industry moving in so we are still seeing real estate appreciation. An entire section of last friday's paper was legal notices. I don't think I've ever seen that many.

The market was up today on relatively light volume. Today being the first trading day of the month is also the day when most mutual funds get and buy equities withthe money that you've put in your 401K.

Personally, I'm expecting (and betting on) a major correction within the next two months. I could be wrong but I've placed my bets with money I can afford to lose, and gonna let the cards fall where they will. The drop back in the middle of August didn't quite hit the 10% that one would expect of a true correction so I think we are still due. The longer and higher the markets go before then the harder and more violent the correction will be.

While I was rereading the article I found the Bear Sterns articles from rueters. Apparently BS wanted to move it to the Caimans and file bankruptcy and their clients started filling lawsuits. I'm not sure if this is to avoid lawsuits, or to avoid outside liquidators. They relate I'm just not sure exaclty how.l

www.inteldaily.com
(visit the link for the full news article)

I'm rather skeptical.

I followed the source of the article to:

www.wsws.org...

Until I see those numbers confirmed, I'll take a pass on this one.

I see what you mean loam. I'm not a fan of world socialists myself. I'll chalk it up to ignorance for missing that myself. It still doesn't change the fact that alot of people who arn't in that camp think somthing stinks to high heavens about what certain institutions have (or more appropriately should have) marked to market on their books. Time will tell, I'm sure the only questions, are when, how far, and how fast in my opinion which could be wrong. I'd really like to see the source article for the source article which aparently a big time yearly subscription. I do appreciate you pointing out the source. However, Maybe the pinkos got it right for once. They are due, as much as i hate to say it.

EDIT: after reading a few more articles on that website, there is definately a far left bias. Take that for what you will. I don't have to agree with their politics to admit they could be right. I think they may be. I could be wrong, but I don't think for a second we've seen the end to volatillity in the markets.

[edit on 5-9-2007 by jefwane]

Originally posted by jefwane
Maybe the pinkos got it right for once.

Maybe.

Though, I still have trouble with their representation of the scale of the problem.

I have no doubt the problem is material enough, but I'd like to see those numbers confirmed through some other source.





[edit on 5-9-2007 by loam]

Agree with the whole idea of a correction. I put my 401K into cash in early July. I am NOT putting it back into stocks until the DOW trades at or below 12250 AND the S&P hits 1325.

Now, these number could be an intraday swing on a big down day or on a day with a ton of volatility. In order for markets to properly correct there needs to be a day of what we call "capitulation." On that type of day, sellers want out at any price. They don't care what they sell at, just get them out. This brings on more selling and a cleaning out of market. I know it sounds bad, but its healthy and the market CAN NOT go up without a day like this during a correction. By the way, don't get right back in......Just because my targets would be reached, does not mean the markets won't go lower. Wait for an orderly buy sign.


I might be able to help some of you with questions about the markets, but please do not ask me about stocks. I will not answer questions about individual stocks.

I have followed WSWS for about 5 years now, and even though being left, it is a pretty reliable source of information. They are an alternative to the MSM, which tells you nothing. WSWS always manages to get the inside story when no one else does, and AFAIK, they've never gotten their facts wrong. Don't let any biases interfere with gathering knowledge.