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Post by jeffolie on Jul 25, 2007 12:33:27 GMT -6
Defaults on Some `Alt A' Loans Surpass Subprime Ones (Update1) By Jody Shenn July 24 (Bloomberg) -- Defaults on some so-called Alt A mortgages packaged into bonds last year are now outpacing those from subprime loans, according to Citigroup Inc. More than $800 billion of subprime mortgage bonds and $700 billion of Alt A bonds are outstanding, with ARM bonds totaling more than $600 billion and $450 billion Alt A mortgages, short for Alternative A, are loans that fall just short of the typical underwriting standards of Fannie Mae and Freddie Mac www.bloomberg.com/apps/news?pid=20601087&sid=aeWSvfvHw3cQ&refer=home
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Post by jeffolie on Jul 25, 2007 12:43:49 GMT -6
A Near Halt Liquidity Crunch Looms Citigroup is reporting Defaults on Some `Alt A' Loans Surpass Subprime. As investors flee the market, a near halt in non-guaranteed mortgage-bond sales and a greater differentiation among securities with the same labels and ratings is limiting consensus among analysts on typical levels. Analysts at Credit Suisse and New York-based Bear Stearns reported higher spreads for both Alt A and subprime securities in reports last week. [Mish comment: This is enormously compounding the ability of homebuilders to sell homes. Some are going bankrupt. It's the same every cycle. Risk is piled upon risk as trend players project the past forever into the future. Greed and fraud both run rampant then the whole thing blows up.] Alt A and subprime loans compose about 13 percent to 14 percent of all outstanding home mortgages, according to estimates Federal Reserve Bank of St. Louis President William Poole cited in a speech last week. [Mish comment: Bulls have been citing the small percentage of subprime debt as if it's too small to matter. How many times have we heard, subprime is only 8% of the market. Hmmm Now it's subprime and Alt-A are only 14% of the market. But is 14% the extent of the problem? Of course not. The right questions are: How much total garbage was rated "A" that did not deserve to be. How much of the originally deserving "A" paper also deserves to be downgraded? Thus a seemingly bullish factor is anything but. In fact it serves as a warning about how overrated all this debt was in the first place] globaleconomicanalysis.blogspot.com/
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Post by Grapple on Jul 25, 2007 18:23:01 GMT -6
Don’t worry though, the CEO’s and other insiders are selling off their stock options nicely, below is a link to Countrywide Financial Corp which is the nation’s largest mortgage lender. They know what is happening and bailing out fast. www.secform4.com/insider-trading/25191.htm
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Post by unlawflcombatnt on Jul 25, 2007 20:44:20 GMT -6
Don’t worry though, the CEO’s and other insiders are selling off their stock options nicely, below is a link to Countrywide Financial Corp which is the nation’s largest mortgage lender. They know what is happening and bailing out fast. www.secform4.com/insider-trading/25191.htmGreat find! Countrywide's CEO, Angelo Mozilo, has sold $124 million of his shares in Countrywide over the last 6 months, according to the above link to insider trading. Below is a copy of the graphic showing Mozilo's Insider Trading Sales. If I was a shareholder in Countrywide I'd be selling it all ASAP. If the CEO is trying to dump his own shares in the company, it doesn't say much for the company.
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Post by unlawflcombatnt on Jul 25, 2007 20:48:18 GMT -6
In the 5 minutes since I posted above, Mozilo has sold another $37 million by Insider Trading. His total sales over the last 6 months are now $161 million.
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Post by beachbumbob on Jul 26, 2007 5:05:45 GMT -6
mozilo is to housing what ken lay & gang was to enron debacle. The main reason why I place no faith in corporate rulers to do the "right thing"....wheres SEC when you need them??? CFC shareholders are going get screwed big time
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Post by unlawflcombatnt on Jul 27, 2007 1:55:58 GMT -6
It looks like the SEC's main function is to protect the interests of the most affluent investors. Or maybe just those with the most monetary influence. It appears Mozilo has sold almost $600 billion in stock in Countrywide over the last 2 years. Sounds like he knew good and well that Countrywide was going to go under, and got his money out beforehand. Below is a graphic of his sales of stock in Countrywide.
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Post by Ken on Jul 27, 2007 6:02:54 GMT -6
In the 5 minutes since I posted above, Mozilo has sold another $37 million by Insider Trading. His total sales over the last 6 months are now $161 million. 161 million. poor guy. how is going to get by? looks like a diet of mac and cheese for awhile
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