Wall Street Breakfast: Must-Know News

• Six banks fall short on capital. As news of the preliminary stress test results continues to leak out, sources say at least 6 of the nineteen largest U.S. banks will need additional capital. Some may get extra money from the government, but most of the capital will likely come from the conversion of preferred shares to common equity. The Federal Reserve is in the process of hearing appeals from banks (including Citigroup (C) and Bank of America (BAC)) that were told they need a larger capital cushion. Final test results are due to be released next week.
• Citigroup tries to plug capital hole. Citigroup (C) is trying to convince the government that the bank doesn't need more capital beyond recent plans to shore up its balance sheet and cut costs. However, executives have also told regulators that a capital shortfall identified in the stress tests could be filled by selling large businesses (potentially including core business units), further reducing its balance sheet or asking more investors to convert preferred shares into common stock. In short, anything but accepting additional government aid. Separately, Citigroup has reportedly asked the Treasury for permission to pay bonuses to many key employees. Shares +6.6% premarket (7:00 ET).
• Lewis on the line. Bank of America (BAC) holds its annual meeting today, and shareholders will vote on whether CEO Ken Lewis should be re-elected as the company's chairman of the board. Though Lewis is likely to win re-election to the board by a wide margin, a separate shareholder proposal forcing Lewis to give up his position as chairman is still too close to call. The votes come amid news that the company could require up to $70B in extra capital as a result of the government's stress tests. Shares +3.9% premarket (7:00 ET).
• New mortgage mod rules. The White House unveiled new guidelines in its foreclosure-prevention program to address borrowers with home-equity loans and other second mortgages. The original plan didn't address this group of borrowers, despite the fact that roughly half of seriously delinquent borrowers have a second mortgage. Under the revised plan, companies participating in the loan modification program must automatically modify the second mortgage when the first is reworked. The government will share in the cost of reducing the interest rate on second mortgages for five years.
• Chrysler reaches debt deal. Chrysler's largest lenders and the government reached a major breakthrough on debt reduction, agreeing to write down $6.9B in debt to just $2B ahead of Chrysler's bankruptcy deadline tomorrow. Despite the progress, "there is still some way to go in the negotiations," said a White House spokesman, "so I wouldn't rule anything in or out."
• SEC's fraud-fighting team. After a series of high-profile failings, the SEC is creating a team of specialists to focus on fighting fraud and to make the agency "more smart, more swift and more successful." The idea is a major shift for the SEC, which traditionally has relied on enforcement personnel who were generalists. Details of the new plan are not yet finalized.
• AIG tries to lower default risk. Less than a month after resigning, senior AIG (AIG) executive James Shephard has reportedly decided to stay on as the deputy chief of Paris-based Banque AIG. Insiders say Shephard was pressed to stay in order to help stave off the risk of default on $234B of derivatives; his continued presence at the unit will likely deter several European banks that bought derivatives from taking legal action to force AIG to repay them.
• Verizon, MSFT team up on iPhone rival. Verizon (VZ) is said to be holding talks with Microsoft (MSFT) over a touch-screen music-playing mobile phone that could compete with Apple's (AAPL) iPhone. Talks are still in the early stages, but a phone could be introduced next year. Verizon is also reportedly in talks with Apple about selling a version of the iPhone.
• Falling demand, prices hurt ArcelorMittal. ArcelorMittal (MT) posted a wider-than-expected quarterly loss (see details below) as demand slumped and falling metals prices forced the company to lower the value of its inventories. Steel consumption is expected to drop another 15% in 2009, and the company is bracing for market conditions to 'remain challenging.' Shares -2.0% premarket (7:00 ET).
• Dendreon shares yo-yo on prostate drug. Dendreon's (DNDN) shares plunged dramatically yesterday, falling 45% before trading was halted. The sudden drop was in advance of a meeting at which the company presented data on prostate cancer drug Provenge. As it turns out, Dendreon executives reported that Provenge extended the median survival of prostate cancer patients by 4.1 months and improved 3-year survival by 38%. The findings raise fresh expectations of FDA approval, and sent the stock soaring in premarket trading (+127% at 7:00 ET).
• IBM boosts dividend. IBM (IBM) raised its dividend by 10%, and authorized another $3B in stock buybacks. Despite losing Sun Microsystems (JAVA) to Oracle (ORCL), IBM executives said the company absolutely still has the flexibility to make a major acquisition.
• Retail sales. Retail chain store sales fell 0.7% from a week ago, ICSC reported, and dropped 1.7% Y/Y. Consumer traffic fell for most segments, including grocery, drug, department stores and discounters. Redbook recorded that chain store sales gained 1.6% in the first three weeks of April, better than the 1.3% rise expected. Strong seasonal sales drove the improvement.
• Home prices fall (.pdf). S&P/Case-Shiller's 20-city home price index fell 18.6% in February from a year ago, slightly better than the 19% drop seen last month. All 20 areas were still lower from a month ago, but 16 of the 20 saw an improvement in their annual returns. It's the first time since Oct. 2007 that the index didn't post a record annual decline.
• Confidence ticks up. Conference Board's Consumer Confidence Index improved considerably in April, rising to 39.2 from March's 26.9. Expectations rose to 49.5 from 30.2. "The sharp increase in the Expectations Index suggests that consumers believe the economy is nearing a bottom, however, this Index still remains well below levels associated with strong economic growth."
• Mfg contraction slows. The Richmond Fed's Manufacturing Index contracted more slowly in April, rising to -9 from March's -20. Shipments gained twelve points to -3, new orders rose eighteen points to -2, and the jobs index edged up two points to -26.
• Mortgage apps fall. Mortgage applications fell 18.1% from a week ago, MBA reported. The average interest rate on 30-year fixed-rate mortgages inched down to 4.62% from 4.73%.

Earnings: Wednesday Before Open

• Aetna (AET): Q1 EPS of $0.96 beats by $0.03. Revenue of $8.6B (+10.5%) vs. $8.5B. Reaffirms FY '09 EPS guidance of $3.85-$3.95. (PR)
• American Tower (AMT): Q1 EPS of $0.15 beats by $0.01. Revenue of $409M (+6.9%) vs. $408M. Issues in-line guidance for FY '09, see revenue of $1.64-$1.77B vs. $1.68B consensus. (PR)
• ArcelorMittal (MT): Q1 EPS of -$0.78 misses by $0.39. Revenue of $15.1B (-49.3%) vs. $15.9B. (PR)
• Baker Hughes (BHI): Q1 EPS of $0.82 beats by $0.06. Revenue of $2.7B (-0.1%) vs. $2.6B. (PR)
• Burger King (BKC): FQ3 EPS of $0.34 in-line. Revenue of $600M (+1.0%) vs. $607M. Sees FY '09 EPS of $1.39-$1.42. (PR)
• Endo Pharmaceuticals (ENDP): Q1 EPS of $0.67 beats by $0.04. Revenue of $335M (+15.5%) vs. $338M. (PR)
• FTI Consulting (FCN): Q1 EPS of $0.60 beats by $0.08. Revenue of $348M (+13.3%) vs. $341M. (PR)
• General Dynamics (GD): Q1 EPS of $1.54 beats by $0.08. Revenue of $8.3B (+18%) vs. $7.8B. (PR)
• Hess (HES): Q1 EPS of -$0.18 beats by $0.09. Revenue of $6.9B (-35.8%) vs. $5.6B. (PR)
• IAC/InterActiveCorp (IACI): Q1 EPS of -$0.02 misses by $0.02. Revenue of $332M (-10.4%) vs. $330M. (PR)
• Jones Apparel Group (JNY): Q1 EPS of $0.28 beats by $0.18. Revenue of $891M (-8.6%) vs. $875M. (PR)
• MeadWestvaco (MWV): Q1 EPS of -$0.46 misses by $0.22. Revenue of $1.35B (-10.8%) vs. $1.44B. (PR)
• MedcoHealth Solutions (MHS): Q1 EPS of $0.63 in-line. Revenue of $14.8B (+14.4%) vs. $13.7B. Sees FY '09 EPS of $2.67-$2.77 vs. $2.73 consensus. (PR)
• MGIC Investment (MTG): Q1 EPS of -$1.49 misses by $0.12. Revenue of $435M (+2.7%) vs. $436M. (PR)
• Moody's (MCO): Q1 EPS of $0.41 beats by $0.07. Revenue of $409M (-5.1%) vs. $393M. Declares a quarterly dividend of $0.10/share. (PR)
• PepsiAmericas (PAS): Q1 EPS of $0.20 beats by $0.04. Revenue of $1.1B (-3.7%) in-line. Issues upside guidance for FY '09, sees EPS of $1.83-$1.90 vs. $1.80 consensus. (PR)
• Praxair (PX): Q1 EPS of $0.93 beats by $0.01. Revenue of $2.1B (-20.3%) vs. $2.4B. Sees FY '09 EPS of $3.85-$4.15, revenue of around $9B. (PR)
• Qwest Communications International (Q): Q1 EPS of $0.12 beats by $0.04. Revenue of $3.2B (-6.6%) in-line. (PR)
• Reynolds American (RAI): Q1 EPS of $1.00 beats by $0.05. Revenue of $1.92B (-6.6%) vs. $1.97B. Sees FY '09 EPS guidance of $4.15-$4.45. (PR)
• Rockwell Automation (ROK): FQ2 EPS of $0.29 in-line. Revenue of $1.1B (-24.8%) in-line. (PR)
• Royal Dutch Shell (RDS.A): Q1 EPS of $0.54 misses by $0.54. Revenue of $58.2B vs. $55.2B. Q1 dividend +5% to $0.42/share. "Industry conditions remain challenging, and our focus is on capital discipline and costs." (PR)
• SAP AG (SAP): Q1 EPS of $0.22 misses by $0.07. Revenue of $2.4B (-4%) vs. $2.6B. (PR)
• Sealed Air (SEE): Q1 EPS of $0.33 beats by $0.05. Revenue of $988M (-16.3%) vs. $1.03B. (PR)
• Siliconware Precision Industries (SPIL): Q1 EPS of $0.01 beats by $0.01. (PR)
• Southern Company (SO): Q1 EPS of $0.42 beats by $0.01. Revenue of $3.7B (-0.3%) vs. $3.5B. (PR)
• SPX (SPW): Q1 EPS of $0.81 beats by $0.06. Revenue of $1.2B (-13.9%) in-line. (PR)
• Talisman Energy (TLM): Q1 EPS of $0.30 beats by $0.16. Revenue of $1.8B (-21.5%) vs. $1.7B. (PR)
• Time Warner (TWX): Q1 EPS of $0.45 beats by $0.07. Revenue of $6.9B (-7%) vs. $6.8B. Reaffirms FY '09 guidance of $1.98 EPS. (PR)
• Time Warner Cable (TWC): Q1 EPS of $0.75 beats by $0.14. Revenue of $4.4B (+4.9%) in-line. (PR)
• Tyco Electronics (TEL): FQ2 EPS of $0.14 beats by $0.10. Revenue of $2.5B (-32.9%) vs. $2.4B. Sees FQ3 EPS of $0.01-$0.06, revenue of $2.35B-$2.45B. (PR)
• United Microelectronics (UMC): Q1 EPS of -$0.09 beats by $0.04. Revenue of $319M (-59.6%) vs. $337.5M. (PR)
• ViroPharma (VPHM): Q1 EPS of -$0.77 misses by $0.93. Revenue of $60M (+18.2%) vs. $65M. (PR)
• Waste Management (WMI): Q1 EPS of $0.42 beats by $0.01. Revenue of $2.8B (-14.1%) vs. $3.0B. (PR)
• Wyeth (WYE): Q1 EPS of $0.89 beats by $0.01. Revenue of $5.4B (-5.8%) vs. $5.5B. Reaffirms FY '09 guidance, sees EPS of $3.33-$3.53 vs. $3.50 consensus. (PR)
• Wyndham Worldwide (WYN): Q1 EPS of $0.41 beats by $0.06. Revenue of $901M (-11%) vs. $839M. Reaffirms FY '09 EPS guidance of $1.61-$1.85, FY '09 revenue of $3.5-$3.9B. (PR)

Earnings: Tuesday After Close

• Ace Ltd. (ACE): Q1 EPS of $1.99 beats by $0.03. Shares flat AH. (PR)
• Buffalo Wild Wings (BWLD): Q1 EPS of $0.47 beats by $0.01. Revenue of $131.6M (+35.3%) vs. $129.1M. Shares -11.1% AH. (PR)
• Cabot Oil & Gas (COG): Q1 EPS of $0.41 beats by $0.03. Revenue of $234M (+6.5%) vs. $213M. Shares +4% AH. (PR)
• Carter's (CRI): Q1 EPS of $0.19 beats by $0.03. Revenue of $357M (+33.6%) vs. $335M. Sees Q2 EPS of $0.07-0.10 vs. $0.10. Shares -5.3% AH. (PR)
• Cemex (CX): Q1 operating income of $36M (-29%). Revenue of $3.7B (-32%) vs. $4.03B consensus. (PR)Dreamworks Animation SKG (DWA): Q1 EPS of $0.68 beats by $0.23. Revenue of $263.5M (+67.6%) vs. $211.5M. Shares +14.6% AH. (PR)
• Cerner (CERN): Q1 EPS of $0.52 beats by $0.01. Revenue of $392M (+1.9%) vs. $418M. Full-year guidance in-line. Shares -3.5% AH. (PR)
• Chicago Bridge & Iron (CBI): Q1 EPS of $0.51 beats by $0.06. Revenue of $1.3B (-10%) vs. $1.25B. Shares +17.9% AH. (PR)
• CommScope (CTV): Q1 EPS of $0.14 beats by $0.04. Revenue of $742M (-26.1%) vs. $753M. Q2 revenue guidance in-line. Shares +3.8% AH. (PR)
• E*TRADE Financial (ETFC): Q1 EPS of -$0.41 misses by $0.01. Revenue of $497M (+6%) in-line. Allowance for loan losses increased $120M to $1.2B. Says it will need to further boost its capital position, through selling shares and/or a private cash injection. Shares -27.6% AH. (PR)
• Hertz Global (HTZ): Q1 EPS of -$0.25 misses by $0.03. Revenue of $1.56B (-23.3%) vs. $1.8B. (PR)
• Jones Lang LaSalle (JLL): Q1 EPS of -$0.47 misses by $0.40. Revenue of $494M (-12.4%) vs. $541M. Decreases semi-annual dividend to $0.10 from $0.25. Assets under management fell 11% to $41B. Shares flat AH. (PR)
• Life Technologies (LIFE): Q1 EPS of $0.72 beats by $0.15. Revenue of $785M (+124.1%) vs. $749M. Shares -0.7% AH. (PR)
• Massey Energy Company (MEE): Q1 EPS of $0.51 misses by $0.02. Revenue of $768M (+19.2%) vs. $739M. Says it has taken meaningful action to cut costs, and expects positive cash flow this year. Shares +0.6% AH. (PR)
• Nalco (NLC): Q1 EPS of $0.17 misses by $0.02. Revenue of $868M (-13.1%) vs. $933M. "We are pushing aggressively on productivity to help offset the impacts of weaker end markets." Shares flat AH. (PR)
• Psychiatric Solutions (PSYS): Q1 EPS of $0.50 beats by $0.01. Revenue of $450M (+6.3%) in-line. Sees full-year EPS of $2.24-2.32 vs. $2.21. Shares +8.5% AH. (PR)
• RF Micro Devices (RFMD): FQ4 EPS of -$0.10 misses by $0.05. Revenue of $172.3M (-21.9%) vs. $166.1M. Sees FQ1 EPS of flat vs. consensus of -$0.02. Shares -4.15% AH. (PR)
• Stericycle (SRCL): Q1 EPS of $0.47 beats by $0.01. Revenue of $277M (+8.8%) in-line. Shares flat AH. (PR)
• Sun Microsystems (JAVA): FQ3 EPS of -$0.07 beats by $0.12. Revenue of $2.61B (-20%) vs. $2.86B. Shares -0.2% AH (company is being acquired by Oracle (ORCL)). (PR)
• Superior Energy Services (SPN): Q1 EPS of $0.72 beats by $0.04. Revenue of $437M (-1%) vs. $418M. Shares +1.7% AH. (PR)
• Textron (TXT): Q1 EPS of $0.26 beats by $0.25. Revenue of $2.53B (-23.6%) vs. $2.78B. Sees full-year EPS of $0.45-0.75 vs. $0.97 consensus, and revenue of $11B vs. $11.8B. Launches sale of 19M shares, and $300M in convertible senior notes. Shares -5% premarket. (PR I, II)
• Total System Services (TSS): Q1 EPS of $0.26 misses by $0.04. Revenue of $409M (-2.6%) vs. $474M. Sees full-year revenue of $1.63-1.66B vs. $1.95B consensus. Sees net income down 11-13% vs. a previous 0-3%. Cardholder transaction volume was down 4.3%. Shares -8.3% AH. (PR)
• Trimble Navigation (TRMB): Q1 EPS of $0.28 beats by $0.02. Revenue of $289M (-18.7%) vs. $297M. Sees Q2 EOS of $0.32 vs. $0.35 and revenue of $285-315M vs. $320M. Shares -3.6% AH. (PR)
• Trustmark (TRMK): Q1 EPS of $0.41 beats by $0.12. (PR)
• V.F. Corp. (VFC): Q1 EPS of $0.91 misses by $0.03. Revenue of $1.72B in-line. Sees full-year EPS of $4.70-5.00 vs. consensus of $5.31. Shares -8.2% AH. (PR)

Today's Markets

Overseas markets were broadly higher Wednesday, fueling gains in overnight futures trading.

• Asia: Hang Seng +2.76% to 14,956. Shanghai +2.78% to 2,468. BSE +3.65% to 11,403. Nikkei closed.
• Europe at midday: London +1.15%. Paris +1.2%. Frankfurt +0.8%.
• Futures: Dow +0.9% to 8038. S&P +1% to 860. Nasdaq +0.9%. Crude +1.5% to $50.66. Gold +0.3% to $896.50. Euro +0.8% vs. dollar. Yen -0.6%. Pound +1%.

Wednesday's Economic Calendar

• 7:00 MBA Mortgage Applications
  8:30 GDP (advance)
  9:00 Treasury Refunding Announcement
  10:30 EIA Petroleum Status
  2:15 PM FOMC Announcement
• Notable earnings before Wednesday's open: ABX, AET, AMG, AMT, ARW, BHI, BKC, CNP, ENDP, FCN, GD, GT, HES, IACI, JNY, MCO, MHS, MT, MTG, MWV, NYB, PX, Q, RAI, RDS.A, ROK, SAP, SEE, SI, SO, SPIL, SPW, TEL, TLM, TWC, TWX, UMC, VPHM, WMI, WYE, WYN
• Notable earnings after Wednesday's close: AEM, AFL, AIZ, AKAM, AMKR, ANH, ARRS, AVB, BDN, BMR, BXP, CBG, CBL, CCI, CDNS, CLF, CNQR, CTXS, CVD, DRC, DRE, DTE, EQR, ERJ, ESRX, ESS, FLEX, FLS, FSLR, GERN, GNK, HAR, HGSI, HIW, ICO, JDSU, LSI, O, OI, OII, OKE, ORLY, OSIP, PLD, STR, RYL, SBUX, STM, TCO, TER, TRN, UNM, URI, V, VAR, WLL, WLT, WSH

Seeking Alpha editor Eli Hoffmann contributed to this post.

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Comments

[jeandit75:]

RE: Six banks fall short on capital.

Why should we care? The market wants to go up. Who cares that we are getting manipulated by the FED and the US treasury? Just keep buying. What a crappy market!

Apr 29 07:35 AM

[nukldrager:]

What a crappy government. Socialism, socialism, socialism.
But hey, the market wants to go up, get in for the ride!

Apr 29 07:46 AM

[doubleguns:]

Like jumping on board the Titanic maiden voyage!! But hey we can go first class all the way!! yahoo!!!!

Apr 29 08:03 AM

[Speedspirit:]

secondamendmentmarch.com is an idea

Apr 29 08:30 AM

[slipperyrazor:]

gdp down over 6%........ chew on that for awhile!

Apr 29 08:41 AM

[mac123449:]

GDP is horrible wonder what the real non goverment manipulated number is scary.

Apr 29 08:47 AM

[mrktcap:]

My sentiments exactly on all of the above. Doesn't matter what the data is. Logic to sell on bad new and data is out the window. People know that the market is now government backed, so what is the risk of lossing money these days in a long portfolio, assentially none. Unless you are short. I am currently short FAZ and I have gotten hammered.
I am betting on a call for resignation from the CEO's of Bank of America and Citi. Complete crooks, not to say any of the others are any better.

Apr 29 09:00 AM

[guymar:]

I live in a country with a socialist government, which has the following advantages:
1. No capital gains tax, as government is still in denial about the existence of capitalism
2. We can sell securities when the market starts going down, hence no fear of buying in a bear market rally.

Apr 29 09:16 AM

[rockingandr...:]

Nothing neg. seems have an effect....As long as the idiots in power are detirmined to keep pumping 'the peoples money" into the market to keep it afloat....I will stay long....for now...but sleep with one eye open...

Apr 29 09:18 AM

[Bestsolutio...:]

Dr M. Yunus
NOBLE PEACE PRIZE WINNER
"Banker to the Poor"
Quote,
"As with any new idea. Challenge it!
Change it! or Endorse it!"

As brief as possible:
"The Everybody Wins Plan"
A business plan that makes a profit,ends foreclosures,and
restore "credare"-full trust in the American people.

Since it seems to good to be true,the rules of engagement are
ignored and all the powers to be act as if this message is in invisible ink.
Please edit this plan,post it.Help turn this American Nightmare into an American Dream.


Contact information: Carmen Basilovecchio
Best Solutions Fl Real Estate
9804 S Military Trail E-10
Boynton Beach, Fl 33436
561-738-5188...email:b... at aol dot com


THANK YOU
PLEASE
Change it,
Challenge It
or Endorse it.PASS IT ON

A SOLUTION TO THE HOUSING MORTGAGE CRISIS with accountable Bank Funding at NO COST to the taxpayers. By using the 1930's method,i.e., lower interest rates with a longer payback period.The ranch had to be paid for using a 5 year mortgage,till someone created the 25 year mortgage.

Using today's rates and knowledge,the entire inventory of troubled homes will become EXTREMELY AFFORDABLE and thereby
AAA and 100% asset based.At no cost to the taxpayer and with an option for a profit to the taxpayers.

A special 10 year year mortgage with an automatic 30 year
mortgage that includes :
PRINCIPAL
INTEREST
TAXES and
INSURANCE.

PER $100,000 loan there would be a total fixed 10 yr. PITI payment of
.........$475........PITI followed with a 30 year fixed mortgae with a principal and interest payment of around $510 to $540.
FOR HOMEOWNERS;
Let them stay in their homes,
Let them be able to afford it,
and be able to manage it.
THIS IS THE REAL AMERICAN DREAM.
Help the 8% (not for their sake but because it is the only way to stop the 92% that have done no harm from being destroyed by that 8%)


We simply must get off the idea that we should only help "the good" people and leave the "reckless" ones to their own ends. Whether the foreclosed house next to me was owned by a good guy or a reckless flipper doesn't matter.. my home value goes down either way due to the foreclosure.
We simply have to set aside moral judgments and fix the problem.Why not at the same time create revenue for all taxpayers.

Turn this challenge into a greater good for all.Re-establishing "CREDARE" .Faith in the American people,that we are credit worthy and will clean up this mess made by GREED.
This is a fast and great solution to the problem and it allows for time
to fix the blame and to do what is nessecary for future prevention."Repair and Reform"


Problem solved: All homes become owner occupied.All housing supply will be eliminated by demand,created by those who wish to stay in their homes(85%) and by new homeowners (15% foreclosed or rented,Investor owned) because of the extremely low affordable payments.An 18 year old sibling working a fast food job could afford selter payments for their single parent and two siblings.

ACTION:Solve Trillions of dollars crisis at no cost to the taxpayers,and allowing for a tax payer profit.
RESOLVED:ALL "underwater" loans and foreclosed homes to be purchased at 100% of FAIR MARKET VALUE.Loan to be marked "paid-in-full"This is a one time deal and could be done in 6 months are less.As allowed by Freddie and Fannie as part of their interest in securing mortgages and with others a condition for banks if they desire any federal help.
PURCHASE to be made with the use of 10 Year US Treasury Notes at 2.7%.NOTES will be given as payment in full.
Legislation is already in place for GSE agency to do this and also funding is already approved (TARP).
NEW LOAN: is a special "EVERYBODY WINS PLAN" loan
A 10 Year loan that has fixed payments (120) with payment number 121 (the magic bullet) ...... paying the balance in full.Because of the low cost of the funding(12/31/08 @ 2.08%)now @ 2.6% with the special long term payback this will be a very affordable payback.
TERMS FOR THE NEW LOAN:120 fixed, low, and affordable monthly payments of........
.................. (A) payment of total interest;
.................. (B)15% of principal ;
.................. (C)15% for taxes and insurance.
This is a total payment ,known as P.I.T.I.
MAGIC BULLET:Payment number 121..the new 30 year mortgage.. is given by a third party lender to the owner at a fixed prevailing rate,for the 85% balance.NOTE:IF A TAXPAYER PROFIT IS DESIRED AT 5%,then the 30 year is to be 90% of the original new loan.(If 3 Trillion needed that's 150 Billion profit).
Example:$100,000 "EVERYBODY WINS LOAN"
LOAN AMOUNT $100,000 with payments to include:
A...Total 10 years interest............... $27,000
B...15% for principle reduction........ .$15,000
C..15%..TAXES and INSURANCE.....$15,000
TOTAL....................
paid by 120 fixed equal payments of $475.00 each...... (wow, how affordable is a $100,000 mortgage at a total P.I.T.I. payment of $475.00 per month???)Then the 10 year treasury bond is paid-in-full since a new 30 year fixed mortgage is acquired for the $85,000 balance.NOTE: if 5%taxpayer profit is desired then the new 30 year loan is for $90,000.


To calculate payment for 10 year portion use a factor of 4.75 per $1,000.
Example:, if loan amount is $250,000;payments of $1187.50
($250 X 4.75 = TOTAL PITI FOR A HOME VALUE OF $250,000
at an unbelievabe low $1187.50
REPEAT: Extremely affordable.It is total payment...P.I.T.I.

Thank you,Paul Volcker......"An outside agency" Fannie Mae and Freddie Mac create
Freddie Aff (Federal Affordable housing)
Robert Shiller...."properly funded"(10 year Treasury Note)
Dr. Yunus..........." a profittable business that does
a social good."(Freddie Aff a business plan with a
social agenda)



**********************...

PLAN MODIFIED**************.
4/29/09****************
Calif, .... STYLE*****


You Gotta Luv CA.
They have the solution to the Subprime Mortgage Crisis,
all the foreclosures and short sales.To finally stop the falling
home prices and stabilize the housing market.
As per WSJ article( Google:Tax Credit Gives California Builders A Lift )
Some economists state it is doing nothing to help but it also generates
increased TAX revenues as well as Sale tax revenues on household items
and CREATES employment......THIS IS FOR NEW HOMES PURCHASE!!!

PLEASE APPLY THE SAME PRINCIPLE TO ALL THE UNDERWATER,
DEFAULTING AND SOON TO BE DEFAULTING LOANS and turn the "toxic"
bad loans INTO 100% asset based AAA loans.

The "EVERYBODY WINS PLAN" is simple and it is profitable.
A longer term loan at very low interest rates that


MAKE ALL THE HOMES AFFORDABLE.

As in California
They have added $10,000 to the $8,000 credit
to purchase new homes.

WHY NOT USE THE SAME TACTIC TO END
ALL FORECLOSURES AND SHORT SALES
AND TURN THEM INTO AFFORDABLE HOMES.
END THE MASSIVE INVENTORY ON THE MARKET
AND STABILIZE PRICES.

The "EVERYBODY WINS PLAN"

ALL LOANS TO BE MODIFIED AT 105% of
FAIR MARKET VALUE.
NEW LOAN GOES ON THE BOOKS
It is a 10 year loan at 4% with a balloon payment
of the balance.

THE LOAN
PER $100,000 will have a PITI payment of
$467 per month fixed for 120 Months.

YES,a $100,000 home will be an affordable residence
for an American homeowner for $467 per Month
...TOTAL PITI (PRIN. INT. TAXES, INS.

A $200,000 home will be $934
TOTAL PITI.

TOO GOOD TO BE TRUE?????

It just may be true using the California way-
Federal contribution of $100 per month for interest
instead of cash gift up front
and State contribution of $100 per month for taxes
instead of cash gift up front.
Both fed and state will benefit from giving.Yes If loans are
FDIC and Home Bank Loans they would be
"Stimulating the cash flow to banks and firm their assets.
The state will more than increase their tax revenues by
giving.Giving back on the 8% of homes in trouble will INCREASE
the income from the other 92%
EVERYBODY WINS!!!!

Too Good To Be True????

you will have to ask me for details of the "EVERYBODY WINS PLAN"
in order to find out how 120 payments of $467 with $100 (Fed) and $100 (State)
pays a $100,000 Note at 4%.

I await your request for free details: bestsolutionsfl at aol dot com
Information provided so anyone who wishes to post can verify originallity.

Carmen Basilovecchio
Best Solutions Fl Real Estate
9804 S Military Trail E-10
Boynton Beach,Fl 33436

Basics:
On new loan of $100,000.
10 years payments (120)
at $467,$100,and $100 equals $80,040
which is applied as follows:
PRIN -$15,000
INT -$40,000
TAXES-$15,000
INS -$10,000
THIS REDUCES THE AMOUNT OWED ON THE HOUSE
PER $100,000 TO $85,000.
THIS BALANCE IS PAID IN FULL with a new 30 year mortgage.
HOW THIS FOR "SMOKE AND MIRROWS:
*$40,000 paid to FDIC insured banks or Home Loan Bank
with no government stock issues
*$15,000 paid in property taxes,a net gain
*and if you really want to help the economy how about
$10,000 IN INSURANCE PRIMEUMS GOING TO AIG
TO HELP GET TAXPAYERS MONEY BACK.
HOW MANY JOBS WOULD BE SAVED AND NEW ONES CREATED.
And do not forget ,about 6 million homeowners with excellent credit with EQUITY
(the ignored part) in their home.What do you think they will do the the most
important part of the economy-CONSUMER SPENDING?

PLEASE post,send to Obama,Summers,Geithner,
their think tanks have already stated the solution is in LOWER RATES OVER A LONGER PERIOD OF TIME!!!
This is at NO cost to taxpayers and makes a profit.
bestsolutionsfl at aol dot com


ADDENDUM:NOW that all homeowners are resuced at a profit we MAY,we COULD make a profit by helping the banks.


For this to be a full solution,that is making the asset 100% whole,the difference between the new borrowers loan and the UNPAID LOSS has to be addressed

Lenders are given 100% of Fair Market Value which the borrowers pay back.The lenders would also be given the
"PHANTOM AMOUNT" ( the actual amount of the bad loan that is loss).
The payment is in the same form-the 10 year Treasury.
Once again,with terms and conditions for repayment at a profit!

Out of money loan to lender:10 year payback that includes Principle and Interest
25% of loan amount full interest plus .25% with payment 121 being the 75% balance making the loan paid in full.
If 10 years recovery is not sufficient the payment
could be a repeat of the process( repeat with a new
10 year loan)

Example:per $100,000
120 payments for.............$25,000 principle
............. $29,500 Interest (2.7+.25)
at $425 per month.

Banks will easily earn that money from using the money given , PLUS THE FREED RESERVES. The lenders will have DOUBLE the money to lend at DOUBLE the rate.Make a profit to pay off it's losses.
The American people are learning DAILY that banks know how to profit
as the people with GREAT credit see their credit card rates go to 24%.


THE ******MOST UNBELIEVABLE PART*********
the agency(GSE's) and the funding ($700 Billion "plus what is needed") is already legally there,so this could be done within 90 days!!!!!!!
An anouncement of this plan
with details would create an immediate RELIEF and "CREDARE"-CREDIT-TRUST in the AMERICAN SYSTEM.

REQUEST DETAILS,ASK QUESTIONS
More details:
A fair ,fast action business plan ; a loan modification to end foreclosures, defaulting or soon to be defaulting loans,establish firm housing prices,re-
establish the faith and credit of the American homeowner.At no cost ,rather a profit to the taxpayer.
* EVERYBODY WINS PLAN*
PERHAPS The first step is to form a NEW agency
to last for ten years,owned by taxpayers,hopefully with 5 or 7 Directors .
( Former Pres.Clinton,with Former Pres.Bush,Bill Gates with Warren Buffett, Sheila Bair, Paul Volcker,Robert J Shiller ????)
This new agency will be adequately funded,and as described will operate as a profit driven business,not a bailout plan.THE LEGALITY is already there.
we could call this agency "FREDDIE AFF" (FERERAL AFFORDABLE HOUSING)
THE MAGIC BULLET"
Freddie Mac and Fannie Mae can create legally a branch,(Freddie AFF)
that legally can re-modify all loans it has using power it already has had legislated to them,and it has already been funded by congress at an UNLIMITED AMOUNT.(There is no limit on TARP).
All passed and signed in law!!!
A 10 year fixed rate Treasury Bond bond is used by this new agency to pay for all foreclosures , defaulting and "underwater" loans.The discount rate still allows for a 2.7 10 year Treasury Note! !(10 Year Treas.@ 2.7% an unbelievable high with the discount rate at 0%).
THEY ARE NOT SOLD ON THE MARKET!They are issued as replacement for the present loans.
Freddie Aff is to purchase from lenders all loans that seek modification,and pay lenders 110% fair market value(the real asset value) and 100% of lost portion of asset that was packaged and sold.Asset must be made whole,100%
Everybody must win in order to succeed..This Fair Market Value can be a written document acquired in days ,one for each and every single home out there.There are over one million real estate agents just a phone call away that can do this at an extremely low cost effective method.Cost could be capped at $99 per household. OR GET IT FREE ON THE NET!
Lender must sell all loans on which borrowers seek modification,because all American homeowners were and are victims.(Remember blame fixing will come)Loans are marked "paid-in-full".In this portion (borrowers) pay off the new loans which shall be a "HOMESAFE 10/30 LOAN.(As Described.)Yes,borrowers will be winners.
There is a gap between this new true asset loan amount and the bad or "toxic" loan,we shall call this amount the "out of money" amount. This must be made whole from the bottom up.
The "out of money" loss- 100% of which will be paid directly to the lenders ,thereby covering 100% of the refinanced CDO's "true asset value" of their money already loss.This portion (lenders)will be dealt with a by the EVERYBODY WINS 10 year loan special loans.YES,even the lenders will be winners.Yes at NO cost to taxpayers rather as an investment with a net profit.This is a business plan that has a payback agreement attached to it.
NEW LOAN with an AFFORDABLE PAYMENT is then set with collectable terms and conditions,thereby turning Bad Loans into Good LOANS.
THE BORROWER WINS,the LENDER WINS,but yet we need everybody to win.YES,even the taxpayer,the real provider of the money shall win because beginning with immediate payments that end in just 120 months this entire "EVERYBODY WINS PLAN"
INVESTMENT will have ALL principle,interest and profit paid back!
For EVERYBODY TO WIN the payments Must be affordable , collectable and AAA credit worthy.
Freddie Aff will be a totally taxpayer owned corporation with a ten year life span,it will be a profit making venture , fully funded by the use of 10 Year Treasury Bonds.
The bonds will be used to purchase all the bad loans in afore mentioned manner.This could be done in an unbelievable speedy manner at an extremely cost effective method.As mentioned a Market evaluation in just days with a million real estate agents begging for the opportunity.The
home owner will then make an appointment with a title company or attorney of their choice,who will complete a HUD-1 Statement once again at an extremely cost effective method ( This could be capped at $499)
The new agency can then settle (close ) the contract with Freddie Aff. Immagine payment will start immediately on a 100% asset backed AAA loan at settlement (closing) with two months payment.
HOME SALES INVENTORY DRASTICALLY REDUCED,NEW HOMEOWNERS CREATED!
AFFORDABLE HOUSING.WOW!
This is a business plan that will let everybody win,"EVERYBODY WINS"
This can be done within 90 days.
"CREDARE" latin CREDIT......TRUST will be restored.

Apr 29 09:21 AM

[bobbobwhite:]

Why does SA allow book-long postings like yours, no matter what it says??? This is not the right venue! Write a book on it instead.

On Apr 29 09:21 AM Bestsolutionsfl wrote:

>
> Dr M. Yunus
> NOBLE PEACE PRIZE WINNER
> "Banker to the Poor"
> Quote,
> "As with any new idea. Challenge it!
> Change it! or Endorse it!"
>
> As brief as possible:
> "The Everybody Wins Plan"
> A business plan that makes a profit,ends foreclosures,and
> restore "credare"-full trust in the American people.
>
> Since it seems to good to be true,the rules of engagement are
> ignored and all the powers to be act as if this message is in invisible
> ink.
> Please edit this plan,post it.Help turn this American Nightmare into
> an American Dream.
>
>
> Contact information: Carmen Basilovecchio
> Best Solutions Fl Real Estate
> 9804 S Military Trail E-10
> Boynton Beach, Fl 33436
> 561-738-5188...email:b... at aol dot com
>
>
> THANK YOU
> PLEASE
> Change it,
> Challenge It
> or Endorse it.PASS IT ON
>
> A SOLUTION TO THE HOUSING MORTGAGE CRISIS with accountable Bank Funding
> at NO COST to the taxpayers. By using the 1930's method,i.e., lower
> interest rates with a longer payback period.The ranch had to be paid
> for using a 5 year mortgage,till someone created the 25 year mortgage.
>
>
> Using today's rates and knowledge,the entire inventory of troubled
> homes will become EXTREMELY AFFORDABLE and thereby
> AAA and 100% asset based.At no cost to the taxpayer and with an option
> for a profit to the taxpayers.
>
> A special 10 year year mortgage with an automatic 30 year
> mortgage that includes :
> PRINCIPAL
> INTEREST
> TAXES and
> INSURANCE.
>
> PER $100,000 loan there would be a total fixed 10 yr. PITI payment
> of
> .........$475........PITI followed with a 30 year fixed mortgae with
> a principal and interest payment of around $510 to $540.
> FOR HOMEOWNERS;
> Let them stay in their homes,
> Let them be able to afford it,
> and be able to manage it.
> THIS IS THE REAL AMERICAN DREAM.
> Help the 8% (not for their sake but because it is the only way to
> stop the 92% that have done no harm from being destroyed by that
> 8%)
>
>
> We simply must get off the idea that we should only help "the good"
> people and leave the "reckless" ones to their own ends. Whether the
> foreclosed house next to me was owned by a good guy or a reckless
> flipper doesn't matter.. my home value goes down either way due to
> the foreclosure.
> We simply have to set aside moral judgments and fix the problem.Why
> not at the same time create revenue for all taxpayers.
>
> Turn this challenge into a greater good for all.Re-establishing "CREDARE"
> .Faith in the American people,that we are credit worthy and will
> clean up this mess made by GREED.
> This is a fast and great solution to the problem and it allows for
> time
> to fix the blame and to do what is nessecary for future prevention."Repair
> and Reform"
>
>
> Problem solved: All homes become owner occupied.All housing supply
> will be eliminated by demand,created by those who wish to stay in
> their homes(85%) and by new homeowners (15% foreclosed or rented,Investor
> owned) because of the extremely low affordable payments.An 18 year
> old sibling working a fast food job could afford selter payments
> for their single parent and two siblings.
>
> ACTION:Solve Trillions of dollars crisis at no cost to the taxpayers,and
> allowing for a tax payer profit.
> RESOLVED:ALL "underwater" loans and foreclosed homes to be purchased
> at 100% of FAIR MARKET VALUE.Loan to be marked "paid-in-full"This
> is a one time deal and could be done in 6 months are less.As allowed
> by Freddie and Fannie as part of their interest in securing mortgages
> and with others a condition for banks if they desire any federal
> help.
> PURCHASE to be made with the use of 10 Year US Treasury Notes at
> 2.7%.NOTES will be given as payment in full.
> Legislation is already in place for GSE agency to do this and also
> funding is already approved (seekingalpha.com/symbo...).
>
> NEW LOAN: is a special "EVERYBODY WINS PLAN" loan
> A 10 Year loan that has fixed payments (120) with payment number
> 121 (the magic bullet) ...... paying the balance in full.Because
> of the low cost of the funding(12/31/08 @ 2.08%)now @ 2.6% with the
> special long term payback this will be a very affordable payback.
>
> TERMS FOR THE NEW LOAN:120 fixed, low, and affordable monthly payments
> of........
> .................. (seekingalpha.com/symbol/a) payment of
> total interest;
> .................. (seekingalpha.com/symbo...% of principal
> ;
> .................. (seekingalpha.com/symbo...% for taxes
> and insurance.
> This is a total payment ,known as P.I.T.I.
> MAGIC BULLET:Payment number 121..the new 30 year mortgage.. is given
> by a third party lender to the owner at a fixed prevailing rate,for
> the 85% balance.NOTE:IF A TAXPAYER PROFIT IS DESIRED AT 5%,then the
> 30 year is to be 90% of the original new loan.(If 3 Trillion needed
> that's 150 Billion profit).
> Example:$100,000 "EVERYBODY WINS LOAN"
> LOAN AMOUNT $100,000 with payments to include:
> A...Total 10 years interest............... $27,000
> B...15% for principle reduction........ .$15,000
> C..15%..TAXES and INSURANCE.....$15,000
> TOTAL....................
> paid by 120 fixed equal payments of $475.00 each...... (wow, how
> affordable is a $100,000 mortgage at a total P.I.T.I. payment of
> $475.00 per month???)Then the 10 year treasury bond is paid-in-full
> since a new 30 year fixed mortgage is acquired for the $85,000 balance.NOTE:
> if 5%taxpayer profit is desired then the new 30 year loan is for
> $90,000.
>
>
> To calculate payment for 10 year portion use a factor of 4.75 per
> $1,000.
> Example:, if loan amount is $250,000;payments of $1187.50
> ($250 X 4.75 = TOTAL PITI FOR A HOME VALUE OF $250,000
> at an unbelievabe low $1187.50
> REPEAT: Extremely affordable.It is total payment...P.I.T.I.
>
> Thank you,Paul Volcker......"An outside agency" Fannie Mae and Freddie
> Mac create
> Freddie Aff (Federal Affordable housing)
> Robert Shiller...."properly funded"(10 year Treasury Note)
> Dr. Yunus..........." a profittable business that does
> a social good."(Freddie Aff a business plan with a
> social agenda)
>
>
>
> **********************...
>
> PLAN MODIFIED**************.
> 4/29/09****************
> Calif, .... STYLE*****
>
>
> You Gotta Luv CA.
> They have the solution to the Subprime Mortgage Crisis,
> all the foreclosures and short sales.To finally stop the falling
>
> home prices and stabilize the housing market.
> As per WSJ article( Google:Tax Credit Gives California Builders A
> Lift )
> Some economists state it is doing nothing to help but it also generates
>
> increased TAX revenues as well as Sale tax revenues on household
> items
> and CREATES employment......THIS IS FOR NEW HOMES PURCHASE!!!
>
> PLEASE APPLY THE SAME PRINCIPLE TO ALL THE UNDERWATER,
> DEFAULTING AND SOON TO BE DEFAULTING LOANS and turn the "toxic"<br/>bad
> loans INTO 100% asset based AAA loans.
>
> The "EVERYBODY WINS PLAN" is simple and it is profitable.
> A longer term loan at very low interest rates that
>
>
> MAKE ALL THE HOMES AFFORDABLE.
>
> As in California
> They have added $10,000 to the $8,000 credit
> to purchase new homes.
>
> WHY NOT USE THE SAME TACTIC TO END
> ALL FORECLOSURES AND SHORT SALES
> AND TURN THEM INTO AFFORDABLE HOMES.
> END THE MASSIVE INVENTORY ON THE MARKET
> AND STABILIZE PRICES.
>
> The "EVERYBODY WINS PLAN"
>
> ALL LOANS TO BE MODIFIED AT 105% of
> FAIR MARKET VALUE.
> NEW LOAN GOES ON THE BOOKS
> It is a 10 year loan at 4% with a balloon payment
> of the balance.
>
> THE LOAN
> PER $100,000 will have a PITI payment of
> $467 per month fixed for 120 Months.
>
> YES,a $100,000 home will be an affordable residence
> for an American homeowner for $467 per Month
> ...TOTAL PITI (PRIN. INT. TAXES, INS.
>
> A $200,000 home will be $934
> TOTAL PITI.
>
> TOO GOOD TO BE TRUE?????
>
> It just may be true using the California way-
> Federal contribution of $100 per month for interest
> instead of cash gift up front
> and State contribution of $100 per month for taxes
> instead of cash gift up front.
> Both fed and state will benefit from giving.Yes If loans are
> FDIC and Home Bank Loans they would be
> "Stimulating the cash flow to banks and firm their assets.
> The state will more than increase their tax revenues by
> giving.Giving back on the 8% of homes in trouble will INCREASE <br/>the
> income from the other 92%
> EVERYBODY WINS!!!!
>
> Too Good To Be True????
>
> you will have to ask me for details of the "EVERYBODY WINS PLAN"
>
> in order to find out how 120 payments of $467 with $100 (Fed) and
> $100 (State)
> pays a $100,000 Note at 4%.
>
> I await your request for free details: bestsolutionsfl at aol dot
> com
> Information provided so anyone who wishes to post can verify originallity.
>
>
> Carmen Basilovecchio
> Best Solutions Fl Real Estate
> 9804 S Military Trail E-10
> Boynton Beach,Fl 33436
>
> Basics:
> On new loan of $100,000.
> 10 years payments (120)
> at $467,$100,and $100 equals $80,040
> which is applied as follows:
> PRIN -$15,000
> INT -$40,000
> TAXES-$15,000
> INS -$10,000
> THIS REDUCES THE AMOUNT OWED ON THE HOUSE
> PER $100,000 TO $85,000.
> THIS BALANCE IS PAID IN FULL with a new 30 year mortgage.
> HOW THIS FOR "SMOKE AND MIRROWS:
> *$40,000 paid to FDIC insured banks or Home Loan Bank
> with no government stock issues
> *$15,000 paid in property taxes,a net gain
> *and if you really want to help the economy how about
> $10,000 IN INSURANCE PRIMEUMS GOING TO AIG
> TO HELP GET TAXPAYERS MONEY BACK.
> HOW MANY JOBS WOULD BE SAVED AND NEW ONES CREATED.
> And do not forget ,about 6 million homeowners with excellent credit
> with EQUITY
> (the ignored part) in their home.What do you think they will do the
> the most
> important part of the economy-CONSUMER SPENDING?
>
> PLEASE post,send to Obama,Summers,Geithner,
> their think tanks have already stated the solution is in LOWER RATES
> OVER A LONGER PERIOD OF TIME!!!
> This is at NO cost to taxpayers and makes a profit.
> bestsolutionsfl at aol dot com
>
>
> ADDENDUM:NOW that all homeowners are resuced at a profit we MAY,we
> COULD make a profit by helping the banks.
>
>
> For this to be a full solution,that is making the asset 100% whole,the
> difference between the new borrowers loan and the UNPAID LOSS has
> to be addressed
>
> Lenders are given 100% of Fair Market Value which the borrowers pay
> back.The lenders would also be given the
> "PHANTOM AMOUNT" ( the actual amount of the bad loan that is loss).
>
> The payment is in the same form-the 10 year Treasury.
> Once again,with terms and conditions for repayment at a profit!<br/>
>
> Out of money loan to lender:10 year payback that includes Principle
> and Interest
> 25% of loan amount full interest plus .25% with payment 121 being
> the 75% balance making the loan paid in full.
> If 10 years recovery is not sufficient the payment
> could be a repeat of the process( repeat with a new
> 10 year loan)
>
> Example:per $100,000
> 120 payments for.............$25,000 principle
> ............. $29,500 Interest (2.7+.25)
> at $425 per month.
>
> Banks will easily earn that money from using the money given , PLUS
> THE FREED RESERVES. The lenders will have DOUBLE the money to lend
> at DOUBLE the rate.Make a profit to pay off it's losses.
> The American people are learning DAILY that banks know how to profit
>
> as the people with GREAT credit see their credit card rates go to
> 24%.
>
>
> THE ******MOST UNBELIEVABLE PART*********
> the agency(GSE's) and the funding ($700 Billion "plus what is needed")
> is already legally there,so this could be done within 90 days!!!!!!!
>
> An anouncement of this plan
> with details would create an immediate RELIEF and "CREDARE"-CREDIT-TRUST
> in the AMERICAN SYSTEM.
>
> REQUEST DETAILS,ASK QUESTIONS
> More details:
> A fair ,fast action business plan ; a loan modification to end foreclosures,
> defaulting or soon to be defaulting loans,establish firm housing
> prices,re-
> establish the faith and credit of the American homeowner.At no cost
> ,rather a profit to the taxpayer.
> * EVERYBODY WINS PLAN*
> PERHAPS The first step is to form a NEW agency
> to last for ten years,owned by taxpayers,hopefully with 5 or 7 Directors
> .
> ( Former Pres.Clinton,with Former Pres.Bush,Bill Gates with Warren
> Buffett, Sheila Bair, Paul Volcker,Robert J Shiller ????)
> This new agency will be adequately funded,and as described will operate
> as a profit driven business,not a bailout plan.THE LEGALITY is already
> there.
> we could call this agency "FREDDIE AFF" (FERERAL AFFORDABLE HOUSING)
>
> THE MAGIC BULLET"
> Freddie Mac and Fannie Mae can create legally a branch,(Freddie AFF)
>
> that legally can re-modify all loans it has using power it already
> has had legislated to them,and it has already been funded by congress
> at an UNLIMITED AMOUNT.(There is no limit on TARP).
> All passed and signed in law!!!
> A 10 year fixed rate Treasury Bond bond is used by this new agency
> to pay for all foreclosures , defaulting and "underwater" loans.The
> discount rate still allows for a 2.7 10 year Treasury Note! !(10
> Year Treas.@ 2.7% an unbelievable high with the discount rate at
> 0%).
> THEY ARE NOT SOLD ON THE MARKET!They are issued as replacement for
> the present loans.
> Freddie Aff is to purchase from lenders all loans that seek modification,and
> pay lenders 110% fair market value(the real asset value) and 100%
> of lost portion of asset that was packaged and sold.Asset must be
> made whole,100%
> Everybody must win in order to succeed..This Fair Market Value can
> be a written document acquired in days ,one for each and every single
> home out there.There are over one million real estate agents just
> a phone call away that can do this at an extremely low cost effective
> method.Cost could be capped at $99 per household. OR GET IT FREE
> ON THE NET!
> Lender must sell all loans on which borrowers seek modification,because
> all American homeowners were and are victims.(Remember blame fixing
> will come)Loans are marked "paid-in-full".In this portion (borrowers)
> pay off the new loans which shall be a "HOMESAFE 10/30 LOAN.(As Described.)Yes,borrowers
> will be winners.
> There is a gap between this new true asset loan amount and the bad
> or "toxic" loan,we shall call this amount the "out of money" amount.
> This must be made whole from the bottom up.
> The "out of money" loss- 100% of which will be paid directly to the
> lenders ,thereby covering 100% of the refinanced CDO's "true asset
> value" of their money already loss.This portion (lenders)will be
> dealt with a by the EVERYBODY WINS 10 year loan special loans.YES,even
> the lenders will be winners.Yes at NO cost to taxpayers rather as
> an investment with a net profit.This is a business plan that has
> a payback agreement attached to it.
> NEW LOAN with an AFFORDABLE PAYMENT is then set with collectable
> terms and conditions,thereby turning Bad Loans into Good LOANS.<br/>THE
> BORROWER WINS,the LENDER WINS,but yet we need everybody to win.YES,even
> the taxpayer,the real provider of the money shall win because beginning
> with immediate payments that end in just 120 months this entire "EVERYBODY
> WINS PLAN"
> INVESTMENT will have ALL principle,interest and profit paid back!
>
> For EVERYBODY TO WIN the payments Must be affordable , collectable
> and AAA credit worthy.
> Freddie Aff will be a totally taxpayer owned corporation with a ten
> year life span,it will be a profit making venture , fully funded
> by the use of 10 Year Treasury Bonds.
> The bonds will be used to purchase all the bad loans in afore mentioned
> manner.This could be done in an unbelievable speedy manner at an
> extremely cost effective method.As mentioned a Market evaluation
> in just days with a million real estate agents begging for the opportunity.The
>
> home owner will then make an appointment with a title company or
> attorney of their choice,who will complete a HUD-1 Statement once
> again at an extremely cost effective method ( This could be capped
> at $499)
> The new agency can then settle (close ) the contract with Freddie
> Aff. Immagine payment will start immediately on a 100% asset backed
> AAA loan at settlement (closing) with two months payment.
> HOME SALES INVENTORY DRASTICALLY REDUCED,NEW HOMEOWNERS CREATED!
>
> AFFORDABLE HOUSING.WOW!
> This is a business plan that will let everybody win,"EVERYBODY WINS"
>
> This can be done within 90 days.
> "CREDARE" latin CREDIT......TRUST will be restored.

Apr 29 09:51 AM

[jr007:]

By the time anyone can wade through all the details of this encyclopedia lengthed diatribe , the market will be recovered on it's own.

Apr 29 10:07 AM

[David White:]

The preliminary GDP figure was -6.1% (a shrinkage). This was significantly worse than the -4.6% to -4.9% figure expected. Retail has been doing badly. Big oil has even been doing badly. We have a possible pandemic brewing with the swine flu. I don't see the good news. Yet the market is going up this morning.

Perhaps it is the upgrade of the banking sector to Neutral by Trone. If so, I find this highly questionable logic.

The old saying, "sell in May and go away", may be proving itself true again this morning. We are not in May yet!!!

It may be that people are just delighted that the preliminary GDP number for Q1 was less than the final figure for the previous quarter. They shouldn't be. The figures have tended to get worse on further updates.

It may be that people no longer fear the swine flu. That to is probably a mistake. The WHO raised the pandemic threat level to 4 yesterday. That is "upward", not downward. It is simply too soon to tell how serious this epidemic will become. The first US death was reported today.

If Trone thinks the banks are well enough capitalized, he is not seeing the big picture. Conditions have done nothing but worsen over the last 6 months. Each time the IMF puts out a new world GDP estimate, it is lower. Ditto the Fed with its estimates. There are still a lot of toxic assets. There is still rising unemployment. The credit card industry is quickly becoming highly unprofitable as the charge off rates are increasing quickly. Commercial real estate is supposed to implode this year. Residential Real Estate is still supposed to have serious problems this year. I could go on. The banks cannot wait until they are in imminent danger of going under before they raise capital. They will then not be able to. The Lawmakers think the stress tests are likely not stressful enough (i.e. too close to current conditions). I tend to agree. Apparently Mr. Trone thinks he knows more than the Fed and the Treasury experts. Grabbing at straws is a mistake. Banking stocks will eventually recover. However, they are likely to go through a lot of pain this year. I'd stay away with May on the near horizon. I certainly wouldn't bet the entire market up, just because one analyst sees improvement in the banking sector.. I am sure many others see just the opposite. The one person bucking the current "generally accepted thought" got all of the headlines because his opinion is in such contrast to others.

There is one more day until May. Next week will likely be the end of the major earnings period. What will happen to the market then???

Apr 29 10:26 AM

[guymar:]

They are absolutely right. I am day trading .... and I do agree most stocks are overvalued in the current environment. But on the other hand my Gann-based resistance chart tells me we have left a *very* important resistance behind us since a couple of days, this resistance could be used for a final bounce up (calculated on the daily and taken in account the low of 6/9 march)

On Apr 29 10:03 AM ps55 wrote:

> A lot of the traders at marketfriends.com are cautious about
> buying stocks at these levels, and looking for a selloff later this
> week

Apr 29 11:02 AM

[guymar:]

Very smart, quoting the entire thing a second time :-] As for Bestsolutionsfl: why post this on MarketWatch, seems more appropriate as everyone is there is rambling about macro and pure evil Obamalamadingdong over there....

Apr 29 11:05 AM

[Tech_analyst:]

there is couple of more days for market to dance, eventually it will go down, the backing problmes, unemploymetns high, GDP down -6.1, all news are bad, but market rally.
S&P and Dow both will lose more than 25% from high today in the next three coming weeks.

Apr 29 12:21 PM

[nukldrager:]

Good God man highlight and delete! You threw yourself out with the bath lol


On Apr 29 09:51 AM bobbobwhite wrote:

> Why does SA allow book-long postings like yours, no matter what it
> says??? This is not the right venue! Write a book on it instead.
>
>
> On Apr 29 09:21 AM Bestsolutio

Apr 29 12:32 PM

[Allan Frain:]

"Though Lewis is likely to win re-election to the board by a wide margin, a separate shareholder proposal forcing Lewis to give up his position as chairman is still too close to call."

Maybe shareholders will take an interest in running the companies, now that they have been scalped. Too many e-traders after a quick buck and no interest in how companies were run helped create this mess. The late 1920s were marked by the entrance of "the man on the street" into the equities market as well.

Apr 29 01:02 PM

[Joseph Sherman:]

Citigroup tries to plug capital hole - before its reputation is dead.

Apr 29 01:50 PM

[ArtfulDodger:]

Where are you from, guymar?


On Apr 29 09:16 AM guymar wrote:

> I live in a country with a socialist government, which has the following
> advantages:
> 1. No capital gains tax, as government is still in denial about the
> existence of capitalism
> 2. We can sell securities when the market starts going down, hence
> no fear of buying in a bear market rally.

Apr 29 02:13 PM

[ArtfulDodger:]

Thank you RG. Love your concise, well-written run downs!

Apr 29 02:13 PM

[Mutual Fund...:]

Real Estate Equities are among top performance funds lately as posted on this page www.mutualfundwealth.com/

Apr 29 02:35 PM

[guymar:]

Belgium :-)


On Apr 29 02:13 PM ArtfulDodger wrote:

> Where are you from, guymar?

Apr 29 02:42 PM

[notsosmart:]

article too long? just scroll past it. only takes a few seconds.comment not to your liking? just ignore it.a spelling mistake? really not the end of the world. so many sweating the small stuff.sad.

Apr 29 02:57 PM

[semi supplier:]

No, not socialism. Crony Capitalism. Much worse..well worse than socialism. Unless you're the crony


On Apr 29 07:46 AM nukldrager wrote:

> What a crappy government. Socialism, socialism, socialism.
> But hey, the market wants to go up, get in for the ride!

Apr 29 03:47 PM

[nukldrager:]

How about crappy capitalism? Crapitalism?


On Apr 29 03:47 PM semi supplier wrote:

> No, not socialism. Crony Capitalism. Much worse..well worse than
> socialism. Unless you're the crony

Apr 29 06:30 PM

[Bestsolutio...:]

TO:
NOT SO SMART
How is it with a name like that you were able to post perhaps one of the most intelligent comments.

A plan that would get us out of the home mortgage crisis does require some detail.
"The Everybody Wins Plan" as posted request that anyone
read it then:
Change it
challenge it
or endorse it

PERHAPS A CASH PRIZE TO THE FIRST TEN BLOGGERS IN THE USA THAT PROVE THE THEORY IS INCORRECT WOULD MAKE IT WORTWHILE TO READ AND RESPOND?


I thought that this site had computer savy people that would
help me realize
a.If in fact lower rates and longer term is a solution.
b.It could be at a profit for the taxpayer.
c.That EVERYBODY WINS,i.,e.,ALL PEOPLE
THANK YOU
AGAIN "NOT SO SMART"
from
BASILOVECCHIO


On Apr 29 02:57 PM notsosmart wrote:

> article too long? just scroll past it. only takes a few seconds.comment
> not to your liking? just ignore it.a spelling mistake? really not
> the end of the world. so many sweating the small stuff.sad.

Apr 30 09:32 AM

[Bestsolutio...:]

"WHY DOES SA ALLOW BOOK-LONG POSTINGS...?"
"NO MATTER WHAT IT SAYS???
Dear bobbobwhite, just imagine where we would be if your advice was followed by all the great thinkers,shakers and does of the world.
Imagine asking Socrates ,Einstein,Patrick Henry,billions of others , "KEEP IT TO 50 WORDS OR LESS"

or perhaps you would like to ask,"WHY WOULD SA ALLOW
281 COMMENTS>>>NO MATTER WHAT>


On Apr 29 09:51 AM bobbobwhite wrote:

> Why does SA allow book-long postings like yours, no matter what it
> says??? This is not the right venue! Write a book on it instead.
>
>
> On Apr 29 09:21 AM Bestsolutionsfl wrote:

Apr 30 09:48 AM

[twitee:]

You want the truth:
www.youtube.com/watch?...

Apr 30 01:56 PM

[ArtfulDodger:]

Any worthwhile companies to invest in in Belgium, Guymar?


On Apr 29 02:42 PM guymar wrote:

> Belgium :-)

May 02 01:03 AM