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| | Page 1, 2 | WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !!
| THE WTF GUY !!
User ID: 472293
8/4/2008 9:43 AM
Report abusive post | WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !!
| Quote |
[link to www.nytimes.com]
NYT
August 4, 2008
Housing Lenders Fear Bigger Wave of Loan Defaults
By VIKAS BAJAJ
The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly building.
Homeowners with good credit are falling behind on their payments in growing numbers, even as the problems with mortgages made to people with weak, or subprime, credit are showing their first, tentative signs of leveling off after two years of spiraling defaults.
The percentage of mortgages in arrears in the category of loans one rung above subprime, so-called alternative-A mortgages, quadrupled to 12 percent in April from a year earlier. Delinquencies among prime loans, which account for most of the $12 trillion market, doubled to 2.7 percent in that time.
The mortgage troubles have been exacerbated by an economy that is still struggling. Reports last week showed another drop in home prices, slower-than-expected economic growth and a huge loss at General Motors. On Friday, the Labor Department reported that the unemployment rate in July climbed to a four-year high.
While it is difficult to draw precise parallels among various segments of the mortgage market, the arc of the crisis in subprime loans suggests that the problems in the broader market may not peak for another year or two, analysts said.
Defaults are likely to accelerate because many homeowners’ monthly payments are rising rapidly. The higher bills come as home prices continue to decline and banks tighten their lending standards, making it harder for people to refinance loans or sell their homes. Of particular concern are “alt-A” loans, many of which were made to people with good credit scores without proof of their income or assets.
“Subprime was the tip of the iceberg,” said Thomas H. Atteberry, president of First Pacific Advisors, a investment firm in Los Angeles that trades mortgage securities. “Prime will be far bigger in its impact.”
In a conference call with analysts last month, James Dimon, the chairman and chief executive of JPMorgan Chase, said he expected losses on prime loans at his bank to triple in the coming months and described the outlook for them as “terrible.”
Delinquencies on mortgages tend to peak three to five years after loans are made, said Mark Fleming, the chief economist at First American CoreLogic, a research firm. Not surprisingly, subprime loans from 2005 appear closer to the end of defaults than those made in 2007, for which default rates continue to rise steeply.
“We will hit those points in a few years, and that will help in many ways,” Mr. Fleming said, referring to the loans made later in the housing boom. “We just have to survive through this part of the cycle.”
Data on securities backed by subprime mortgages show that 8.41 percent of loans from 2005 were delinquent by 90 days or more or in foreclosure in June, up from 8.35 percent in May, according to CreditSights, a research firm with offices in New York and London. By contrast, 16.6 percent of 2007 loans were troubled in June, up from 15.8 percent.
Some of that reflects basic math. Over the years, some loans will be paid off as homeowners sell or refinance, and some homes will be foreclosed upon and sold. That reduces the number of loans from those earlier years that could default. Also, since the credit market seized up last year, lenders have become much more conservative and have stopped making most subprime loans and cut back on many other popular mortgages.
The resetting of rates on adjustable mortgages, which was a big fear of many analysts in 2006 and 2007, has become less problematic because the short-term interest rates to which many of those loans are tied have fallen significantly as the Federal Reserve has lowered rates. The recent federal tax rebates and efforts to modify more loans have also helped somewhat, analysts say.
What will sting borrowers more than rising interest rates, analysts say, is having to pay interest and principal every month after spending several years paying only interest or sometimes even less than that. Such loan terms were popular during the boom with alt-A and prime borrowers and appeared appealing while home prices were rising and interest rates were low.
But now, some borrowers could see their payments jump 50 percent or more, and they may not be able to sell their properties for as much as they owe.
Prime and alt-A borrowers typically had a five- or seven-year grace period before payments toward principal were required. By contrast, subprime loans had a two-to-three-year introductory period. That difference partly explains the lag in delinquencies between the two types of loans, said David Watts, an analyst with CreditSights.
“More delinquencies look like they are on the horizon because so few of them have reset,” Mr. Watts said about alt-A mortgages.
The wave of foreclosures is still rising in states like California, where many homeowners turned to creative mortgages during the boom. From April to June, mortgage companies filed 121,000 notices of default in California, up nearly 7 percent from the first quarter and more than twice as many as in the second quarter of 2007, according to DataQuick, a real estate data firm based in La Jolla, Calif. The firm said the median age of the loans increased to 26 months from 16 months a year earlier.
The mortgage giants Freddie Mac and Fannie Mae, which own or guarantee nearly half of all mortgages, are trying to stem that tide. Last week, they said they would pay more to the mortgage servicing companies that they hire to modify delinquent loans and avoid foreclosures.
Delinquencies in prime and alt-A loans are particularly challenging for banks because they hold more such loans on their books than they do subprime mortgages. Downey Financial, which owns a savings bank that operates in California and Arizona, recently reported that 11.2 percent of its loans were delinquent at the end of June, a big increase from the 6.1 percent that were past due at the end of last year.
The bank’s troubles stem from its $6.2 billion portfolio of so-called option adjustable-rate mortgages, which allow borrowers to pay less than the interest owed on their mortgage in the early years. The unpaid interest is added to the principal due on the loan, so over time borrowers can owe more than the initial loan amount. Eventually, when loans grow by 10 percent or 15 percent, the borrowers are required to start paying both the interest and principal due.
Many borrowers who got these loans during the boom had good credit scores, but many of them owe more than their homes are worth. Analysts believe that many will not be able to or want to make higher payments.
“The wave on the prime side has lagged the wave on the subprime side,” said Rod Dubitsky, head of asset-backed research at Credit Suisse. “The reset of option ARM loans is a big event that will drive the timing of delinquencies.” |
| Anonymous Coward
User ID: 478830
8/4/2008 10:01 AM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
Alt-A .. last months news .. bring on DOOM
(Market rally from here until November) |
| Omega 
Total Unequivocal Bad Fuckin' News
User ID: 340280
8/4/2008 10:03 AM
 | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
Alt-A .. last months news .. bring on DOOM
(Market rally from here until November) Quoting: Anonymous Coward 478830
Oh yeah??? NOT.
:optionarm:
Yahoo IM omega375hh |
| Anonymous Coward
User ID: 172662
8/4/2008 10:04 AM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
 |
| Omega
Total Unequivocal Bad Fuckin' News
User ID: 340280
8/4/2008 10:11 AM
| | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
Here is another......
A second, far larger wave of U.S. mortgage defaults is building
By Vikas Bajaj
Monday, August 4, 2008
NEW YORK: The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is building with alarming speed.
After two years of upward spiraling defaults, the problems with mortgages made to people with weak, or subprime, credit are showing the first, tentative signs of leveling off.
But with the U.S. economy struggling, homeowners with better credit are now falling behind on their payments in growing numbers. The percentage of mortgages in arrears in the category of loans one rung above subprime, so-called alternative-A, or alt-A, mortgages, quadrupled to 12 percent in April from a year earlier. Delinquencies among prime loans, which account for most of the $12 trillion market, doubled to 2.7 percent in that time.
While it is difficult to draw precise parallels among various segments of the mortgage market, the arc of the crisis in subprime loans suggests that the problems in the broader market may not peak for another year or two, analysts said.
Defaults are likely to accelerate because many homeowners' monthly payments are rising rapidly. The higher bills come as home prices continue to decline and banks are tightening their lending standards, making it harder for people to refinance loans or sell their homes. Of particular concern are alt-A loans, many of which were made to people with good credit scores without proof of their income or assets.
Much will depend on the course of the economy, particularly unemployment. A weaker job market would push more homeowners toward the financial brink. The U.S. Labor Department reported Friday that the unemployment rate climbed to a four-year high in July. Other downbeat reports last week documented another drop in home prices, slower economic growth than expected and a huge loss at General Motors.
"Subprime was the tip of the iceberg," said Thomas Atteberry, president of First Pacific Advisors, a investment firm in Los Angeles that trades mortgage securities. "Prime will be far bigger in its impact."
During a conference call with analysts last month, James Dimon, the chairman and chief executive of JPMorgan Chase, said he expected losses on prime loans at his bank to triple and described the outlook for them as "terrible."
Delinquencies on mortgages tend to peak three to five years after loans are made, said Mark Fleming, the chief economist at First American CoreLogic, a research firm. Not surprisingly, subprime loans from 2005 appear closer to the end than those made in 2007, for which default rates continue to rise steeply.
"We will hit those points in a few years and that will help in many ways," Fleming said, referring to the loans made later in the housing boom. "We just have to survive through this part of the cycle."
Data on securities backed by subprime mortgages show that 8.41 percent of loans from 2005 were delinquent by 90 days or more or in foreclosure in June, up from 8.35 percent in May, according to CreditSights, a research firm with offices in New York and London. By contrast, 16.6 percent of 2007 loans were troubled in June, up from 15.8 percent.
Some of that reflects basic math. Over the years, some loans will be paid off as homeowners sell or refinance, and some will be foreclosed and sold. That reduces the number of loans from those earlier years that could possibly default. Also, since the credit market seized up last year, lenders have become much more conservative and have stopped making most subprime loans and cut back on many other popular mortgages.
The resetting of rates on adjustable mortgages, which was a big fear of many analysts in 2006 and 2007, has become less problematic because the short-term interest rates that many of those loans are tied to have fallen significantly as the Federal Reserve has lowered U.S. rates. The recent U.S. tax rebates and efforts to modify more loans have also helped somewhat, analysts say.
What will sting borrowers more than rising interest rates, analysts say, is having to pay interest and principal every month after spending several years paying only interest or sometimes even less than that. Such loan terms were popular during the boom with alt-A and prime borrowers and made sense while home prices were rising and interest rates were low.
But now, payments could jump 50 percent or more for some borrowers, and they may not be able to sell their properties for as much as they owe.
Prime and alt-A borrowers typically had a five- or seven-year grace period before having to start making payments toward their principal. By contrast, subprime loans had a two- to three-year introductory period. That difference partly explains the lag in delinquencies between the two types of loans, said David Watts, an analyst with CreditSights.
"More delinquencies look like they are on the horizon because so few of them have reset," Watts said about alt-A mortgages.
The wave of foreclosures is still rising in states like California, where more homeowners turned to creative mortgages during the boom. From April to June, mortgage companies filed 121,000 notices of default in California, up nearly 7 percent from the first quarter and more than twice as many as in the second quarter of 2007, according to DataQuick, a real estate data firm. The firm said that the median age of the loans increased to 26 months from 16 months a year earlier.
The mortgage-financing giants Freddie Mac and Fannie Mae, which own or guarantee nearly half of all mortgages, are trying to stem that tide. Last week, the companies said that they would pay more to mortgage-servicing companies that they hire to modify delinquent loans and avoid foreclosures.
Delinquencies in prime and alt-A loans are particularly challenging for banks because they hold more such loans on their books than they do subprime mortgages. Downey Financial, which owns a savings bank that operates in California and Arizona, recently reported that 11.2 percent of its loans were delinquent at the end of June, a big increase from the 6.1 percent that were past due at the end of last year.
The bank's troubles stem from its $6.2 billion portfolio of so-called option adjustable rate mortgages, which allow borrowers to pay less than the interest owed on their mortgage in the early years.
The unpaid interest is added to the principal due on the loan, so over time borrowers can owe more than when they first got the loan. Eventually, when loans grow by 10 percent or 15 percent, the borrowers are required to start paying both the interest and principal due.
Many borrowers who got these loans during the boom had good credit scores, but many of them owe more than their homes are worth. Analysts said they believed that many would not be able to or want to make higher payments.
"The wave on the prime side has lagged the wave on subprime side," said Rod Dubitsky, head of asset-backed research at Credit Suisse. Resetting the option adjustable rate mortgage loans "is a big event that will drive the timing of delinquencies."
Notes:
Copyright © 2008 The International Herald Tribune www.iht.com
Yahoo IM omega375hh |
| Anonymous Coward
User ID: 472293 (OP)
8/4/2008 11:00 AM | | Anonymous Coward
User ID: 479008
8/4/2008 5:51 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
 |
| Doomamatrix
User ID: 474861
8/4/2008 5:58 PM
 | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
No one has said this yet?
Ok, I will...
ahem...
And so it begins! |
| Anonymous Coward
User ID: 479008
8/4/2008 6:00 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
Better read it...
[link to harmonhouse.net] |
| Anonymous Coward
User ID: 434023
8/4/2008 6:02 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
Alt-A .. last months news .. bring on DOOM
(Market rally from here until November)
Oh yeah??? NOT.
:optionarm: Quoting: Omega
great chart, looks like the peak of the defaults will be in early 2010. |
| Anonymous Coward
User ID: 471491
8/4/2008 6:06 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
  |
| Judas Goat
User ID: 469262
8/4/2008 6:11 PM
 | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
Here is another......
A second, far larger wave of U.S. mortgage defaults is building
By Vikas Bajaj
Monday, August 4, 2008 Quoting: Omega
Uh, that's the same exact article OP posted, by the same exact writer, on the same day. |
| Anonymous Coward
User ID: 472293 (OP)
8/4/2008 6:14 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
Here is another......
A second, far larger wave of U.S. mortgage defaults is building
By Vikas Bajaj
Monday, August 4, 2008
Uh, that's the same exact article OP posted, by the same exact writer, on the same day. Quoting: Judas Goat
They called syndicate reporter /writer !!
hello ?? |
| Omega
Total Unequivocal Bad Fuckin' News
User ID: 340280
8/4/2008 6:17 PM
| | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
Here is another......
A second, far larger wave of U.S. mortgage defaults is building
By Vikas Bajaj
Monday, August 4, 2008
Uh, that's the same exact article OP posted, by the same exact writer, on the same day. Quoting: Judas Goat
Sorry, that was before I had my morning coffee and was from a different website....
Yahoo IM omega375hh |
| Matrix
User ID: 478570
8/4/2008 6:56 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
With the dollar dropping, it does not make a difference how low the interest rate goes, if the foreigners ain't going to invest and buy those re-bundled options, debt riddled America is on her own and the value of property will continue to drop and the foreign investors that the system is banking to rescue them will only start to come in after the point of no return is reached, where they can buy up defaulted properties at rock bottom prices and leave Americans saddled with the remaining debt. Privatize the gains, socialize the losses, spreading corporate freedom and shareholder democracy street by street, house by house. |
| Douggie
User ID: 477423
8/4/2008 7:00 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
are you surprised?
offshoring of the jobs.
stated income loans
high gas prices = higher food prices, higher utility prices, pretty much everything.
330,000 people are at risk of getting there power turned off in the state of new york.
Dont think things will be getting better anytime soon.
They have the power to create reality
I could explain it better but I would need charts, graphs and an easel.
*Term Coined by Douggie 7 Sept 08, 12 AM. *Apaulin, A term use to describe a ditz that is used for political purposes in order to get votes for there party. But doesnt necessarily mean that they have any qualifications for the job. Oh wait, she does have a degree in journalism.
Please excuse typo's. I type fast and dont give a crap about mistyped words. |
| Anonymous Coward
User ID: 380853
8/4/2008 7:06 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
Privatize the gains, socialize the losses, spreading corporate freedom and shareholder democracy street by street, house by house. Quoting: Matrix 478570
Nail on the head!! |
| Anonymous Coward
User ID: 380853
8/4/2008 7:08 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
are you surprised?
offshoring of the jobs.
stated income loans
high gas prices = higher food prices, higher utility prices, pretty much everything.
330,000 people are at risk of getting there power turned off in the state of new york.
Dont think things will be getting better anytime soon. Quoting: Douggie
Do you have a link for the 330 thousand in NY story? |
| Eagle # 1
User ID: 477923
8/4/2008 8:46 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
Thanks, AC 479008 for that link to harmonhouse.com.
It was a long read, BUT, as you said, " You better read ..." and I did !
Great summary of the trap the Banksters of the world ( Rothchilds, MAINLY ) have ensnared both our country, ourselves ( as SLAVES ) and all the generations to come.
And to think great statesmen, Congressmen and others have stated exactly what is/has been happening to us for over 80 YEARS, and nothing was EVER done to stop it.
To think, ALL our political leaders at federal and state levels SUPPORT this travesty, just shows that " a place at the trough " is more important than all their oaths
of 'loyality' to our ONCE great Constitution is MEANINGLESS.
Eagle |
| Eagle # 1
User ID: 477923
8/4/2008 8:52 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
IF you read my comments above, PLEASE read the article at the site recomended by 479008 just above.
It IS the TRUTH, but hard for those living in the political/media/delusional world created for us to swallow/believe.
Thanks !
Got ROPE ?
Eagle |
| Anonymous Coward
User ID: 477923
8/4/2008 9:31 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
|
| Anonymous Coward
User ID: 397152
8/4/2008 10:05 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
|
| Anonymous Coward
User ID: 466677
8/4/2008 10:11 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
No one has said this yet?
Ok, I will...
ahem...
And so it begins! Quoting: Doomamatrix
Zetas right AGAIN!!!!
 |
| Anonymous Coward
User ID: 5465
8/4/2008 10:16 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
Here is another......
A second, far larger wave of U.S. mortgage defaults is building
By Vikas Bajaj
Monday, August 4, 2008
Uh, that's the same exact article OP posted, by the same exact writer, on the same day.
Sorry, that was before I had my morning coffee and was from a different website.... Quoting: Omega
Was it after the morning doob? ;-) |
| Anonymous Coward
User ID: 479144
8/4/2008 10:20 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
IF you read my comments above, PLEASE read the article at the site recomended by 479008 just above.
It IS the TRUTH, but hard for those living in the political/media/delusional world created for us to swallow/believe.
Thanks !
Got ROPE ?
Eagle Quoting: Eagle # 1 477923
Thanks for reading it, Eagle #1 ! If more people did we'd be in a better place
already. I believe it was written back in 2000, but haven't been able to locate
the original author. I've been recommending it since 2004 when I first stumbled on it.
The ROPE is important - as these perfidious bastards need to be held responsible and it's the only language they understand AND our only chance to start over !
Peace, out ! |
| Judas Goat
User ID: 469262
8/4/2008 11:41 PM
| | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
Sorry, that was before I had my morning coffee and was from a different website.... Quoting: Omega
No prob, the International Herald Tribune has started running about 80% New York Times stories since the NYT bought 'em out.
Ugh, another two years of falling prices ... where I live, prices are already back to 1996 levels. Soon they will be at 1976 levels .... :( |
| Wasayo nli
User ID: 379904
8/4/2008 11:50 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
|
| Wasayo nli
User ID: 379904
8/4/2008 11:51 PM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
Alt-A .. last months news .. bring on DOOM
(Market rally from here until November)
Oh yeah??? NOT.
:optionarm: Quoting: Omega
Dear Omega,
Am I reading the ARM reset schedule you posted correctly ~ that they re-set on August 12th? Thanks... Wasayo |
| Anonymous Coward
User ID: 116726
8/5/2008 12:04 AM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
from the OP:
for effect....
"In a conference call with analysts last month, James Dimon, the chairman and chief executive of JPMorgan Chase, said he expected losses on prime loans at his bank to triple in the coming months and described the outlook for them as “terrible.”
========
this quote says it all.
ANYONE SAYING THAT 'ALL IS WELL' or 'the worst is over' really needs to stfu |
| Anonymous Coward
User ID: 116503
8/5/2008 12:11 AM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
from the OP:
for effect....
"In a conference call with analysts last month, James Dimon, the chairman and chief executive of JPMorgan Chase, said he expected losses on prime loans at his bank to triple in the coming months and described the outlook for them as “terrible.”
========
this quote says it all.
ANYONE SAYING THAT 'ALL IS WELL' or 'the worst is over' really needs to stfu Quoting: Anonymous Coward 116726
what was it? 2.7% of prime loans (14 trillion total) are in trouble?
so...3X this amount? hmmm...8.1% of 14 trillion...now that sounds like some serious doom on the horizon.
sounds about 4X worse than the 'subprime' crash. |
| Anonymous Coward
User ID: 322321
8/5/2008 1:12 AM | | Re: WTF !! WTF !! AFTER SUBPRIME TSUNAMI , A BIGGER WAVE OF LOAN DEFAULTS IS COMMING !! NYT REPORTS !! | Quote |
from the OP:
for effect....
"In a conference call with analysts last month, James Dimon, the chairman and chief executive of JPMorgan Chase, said he expected losses on prime loans at his bank to triple in the coming months and described the outlook for them as “terrible.”
========
this quote says it all.
ANYONE SAYING THAT 'ALL IS WELL' or 'the worst is over' really needs to stfu
what was it? 2.7% of prime loans (14 trillion total) are in trouble?
so...3X this amount? hmmm...8.1% of 14 trillion...now that sounds like some serious doom on the horizon.
sounds about 4X worse than the 'subprime' crash. Quoting: Anonymous Coward 116503
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