Subprime Market! PE: Capital Gains Tax!

[NimbleSexyXquisite]

Hey everyone,

its going to be a fed day tommorow!

But my real question is...

Who is in the Subprime market...Not as a Customer but a Broker or Sales Rep. that sells subprime mortgages.

I have a friend at Citi Financial and she is hearing rumors of correction of even rates rising.

Any opinions on the next couple of months on the subprime market, short or long term.

BUt what I am interested in is the past week's news of Private Equity Groups like The Blackstone Group getting hit by Big Government.

The last couple of months have been a whirlwind and now it seems like we are going through a lot changes recently, due to the result of a Democratic Congress.

I am calling out all the Savvy NSX owners to indulge and yell out their opinions on this years' economy and what the future will hold!

$$$$$$$$$$$ :biggrin: :biggrin: :biggrin: :biggrin: :biggrin: :biggrin:

 

[DDankew]

It seems that the FED will stay pat on a rate increase. The Bond market has already priced in the European rate hike this month. 10 year Treasury yields have gone up over 5% and the Market has already done all the work for the FED. Earlier this month we anticipated a rate increase of 1/4 pt in the 4th quarter but now we are not so certain.

Bond prices have dropped significantly this month too. With Black Stone and Bear Sterns HEdge Fund troubles, we'll see a wait and see / what will turn up type of market (stock and Bond).

Hope this helps.

 

[NimbleSexyXquisite]

It seems that the FED will stay pat on a rate increase. The Bond market has already priced in the European rate hike this month. 30 year Treasury yields have gone up over 5% and the Market has already done all the work for the FED. Earlier this month we anticipated a rate increase of 1/4 pt in the 4th quarter but now we are not so ceretain.

Bond prices have dropped significantly this month too. With Black Stone and Bear Sterns HEdge Fund troubles, we'll see a wait and see / what will turn up type of market (stock and Bond).

Hope this helps.

Every opinion counts! Thats why this is my favorite forum. SO Savvy SO diverse So Cultured!!!

One other thing.

They say the fed might concentrate on Headline Inflation rather than Core inflation. Any opinions on this? I guess we can further elaborate util tommorrow.

And what are the opinions on a rate cut in the near months?

It also seems like the Fed is trying to correct or eleviate the Subprime woes.

Keep it going fellas!!!

 

[NSXrunner]

I used to work as an accountant for a mortgage company, I left once I found out what a shadey guy I worked for. (Passed off items like a boob job for his wife as a business expense, along with his son's parking tickets, no wonder the company went belly up a few months after I left) I think subprime woes are still going to be a problem for the next year or so. All the lenders now trying to "work" with their customers will help, but it all depends on what their defenition of help is. Bottom line is speculators and greedy flippers have priced most people out of homes. This will have an effect on the rest of the economy but no one can be sure how much it will affect it. I still see potential for a correction in the mortgage industry, because it is more logical for those prices to drop than it is for every average joe to get a big enough raise for said home.

Thats my two cents, its vague, but then my last name isnt Greenspan. Only other thing I can say is keep an eye on the magic 8-ball. :tongue: :biggrin:

 

[NimbleSexyXquisite]

Thats my two cents, its vague, but then my last name isnt Greenspan. Only other thing I can say is keep an eye on the magic 8-ball. :tongue: :biggrin:

LOL, I wish my last name was Buffet. :tongue:

But seriously, these last few months, actually even years, a lot changes from inflation, loose lending, investment loops holes like blackstone getting punked...

So much speculation (Which I love to hear all sides and opinions) that its making my heads spin but making my wallet hungry! :biggrin:

Thanks for the story, LOL a lot of Mortgage Brokers going belly up!

 

[morrow]

As a loan Officer I see the subprime market still very much hurting our housing and economy. The worst is yet to come in my opinion. There are plenty of loans out there that should have never been written. For example....I had a client referred to me last week for a refinance, the client works as a Janitor for the school district he gave me his paychecks ($3000 monthly), he was given a $445K Neg am loan on his home he purchased 1.5yrs. ago. The home will now appraise for about $440K max. The clients credit score is now in the low 500's because he has maxed out all his credit cards trying to keep things afloat, his family is helping him make his payments. He has been paying the minimum on his loan from day 1 and now is approaching $20K Neg. His Fully Amortized payment is actually more than he brings in gross!
Why was this loan approved in the first place!?

After looking over his loan docs from the purchase, he qualified under a Stated Income program, as a Regional Manager for the School District (not even his real position). His Stated income was $7500! His credit at the time was just over 620 and he was able to bring 5% (borrowed from a family member) for the down payment. The Stated Income loans should only be allowed for Self Employed borrowers with minimum 2yr. History. Stated Wage Earner should not be allowed period. This type of financing is simply undermining the entire lending industry.

 

[93Cherrybomb]

Even after the European rates rose, I didn't see us raising rates again. At least, maybe not so quickly. Since the Fed raised rates so many consecutive terms, it is easier to understand them wanting to take a break. Since nobody can predict exactly what the economy is going to do, it is easier to sit back and see what happens when you do nothing. I hope that makes sense to anyone reading this. Anyway, that is my own personal opinion, but I honestly believe Bernanke is going to sit back and relax this term.

 

[Daedalus]

I am calling out all the Savvy NSX owners to indulge and yell out their opinions on this years' economy and what the future will hold!

The data is as of January, so we're heading into month #6 on the chart.

 

[Sig]

If the Fed really does begins making decisions based on the headline number instead of core, I will be concerned. There are clear merits to both schools of thought, however rates are where they are today based on core trending. If that position were to truly change, then there are significant changes in the offing to get us back to policy inline with headline trending. The fact that it is highly volatile is a whole other story, but will further complicate matters to make vastly important monetary policy decisions based upon a bouncing ball.

 

[DDankew]

Fed holds rates steady again
The nation's central bank keeps a key short-term rate at 5.25% but Bernanke & Co. still worried about inflation.