Quick get a pumper on air to tell everyone all is fine!
CRAM-down principle 40% lol. How's BAC's loss reserve handle that senario? hahahahah
I see many houses WAY for sale overvalued. These are the people who refuse to understand that this is not 2004 anymore. These people who think they will sell their house and move down south to retire are not going anywhere. I can't believe them when they say that their neighbor sold their house for x and x dollars, and my house is better with a bigger backyard. But that was 5 years ago gram and gramps, but good luck. Feel bad for those folks who paid off their house after 30 years, live in a dead end town, and are stuck because of their old way of thinking.
Most of us here already know that the Banks have not marked their mortgages down to their current market value. We therefore know that that the banks are in serious trouble and that their financial statements do not reflect reality. But this has not kept the market price of FAZ from falling lower relentlessly. I doubt that we'll see a change in this trend for some time. SS
That is correct, we've been saying this forever, banks are insolvent. The idea that housing prices were just "temporarily" overshoot to the downside and will have a "V" recovery, and all the faking will be OK, is just total BS and has completely failed.
here we are 1 year later, and housing prices haven't recovered at all, and in fact, most all people not trying to lie about it, say they are going LOWER still.
Sooner or later reality must be faced. So far, its been "later", and "really really later", like 2015.
I don't know what was going on the last half hour. The CNBC correspondent comes on and talks about Barney Frank-in the furter telling banks to mark worthless second mortgages to market and then matter of factly said that can't be done because banks don't have that kind of value and they would go broke. Of course, the other CNBC employee she was talking to knew that also and just matter of factly went on with the interview like everything was normal. Then they get in economic inside named Joseph Stiglitz who recently wrote a book called 'Free Fall' that talks about the moral bankruptcy of the Fed the Treasury and the bailout and how the Fed should get more regulatory power since they messed up the regulation before the financial meltdown. And Maria B. just calmly listens to it all. Bring the little lady another valium and another martini!!!! It was one of those moments like when Erin D. just casually mentioned a few weeks ago how the Fed and Treasury were buying most of the T-Bonds nowadays. Sometimes the truth just slips out on live T.V. kinda like those loose boobies on the red carpet at some of the awards shows.
No Joke, They cant have the truth leaking out from CNBC, I bet they will get in trouble for saying that stuff, I am so glad i brought FAZ, Just in time! Im pretty sure the futures will crash first and then the word will spread like wild fire.