Wall Street Breakfast: Must-Know News

• More banks need capital. Speculation continues to grow ahead of Thursday's stress test results, with sources now saying as many as 10 out of 19 tested banks may need more capital. Regulators will likely cite commercial real-estate loans as a major reason why the banks need more capital, with projected losses of up to 12% on those loans over two years. Despite the rumors, financial shares rose by the most in more than a month yesterday, sending Wells Fargo (WFC) up 23.7%, Bank of America (BAC) up 19.3% and Citigroup (C) up 7.7%.
• S&P marches upwards. The S&P 500 turned positive for 2009, as a late burst of buying in the financial sector, basic-materials, energy and consumer stocks pushed the index to 907.24. The S&P is up 34% since hitting bear-market lows in early March, and is now up 0.4% for the year to date.
• UBS misses profit mark again. UBS (UBS) posted a Q1 net loss of 1.98B Swiss francs ($1.75B) amid more writedowns and continued client withdrawals, and said its bad loans may increase as the global economy worsens. Since taking office in February, CEO Oswald Gruebel has cut 7,500 jobs, replaced two executive board members and sold a Brazilian business unit, calling a return to profitability his 'most urgent' task. Shares -1.2% premarket (7:00 ET).
• Obama tax plan faces resistance. Obama unveiled plans to end tax breaks for U.S.-based multinational corporations but met with resistance from some Democrats in Congress worried about 'unintended consequences.' The proposal would ban three offshore tax-saving strategies commonly used by companies like Citigroup (C), General Electric (GE) and Procter & Gamble (PG), and re-opened a debate about whether U.S. firms can stay globally competitive if forced to pay hefty taxes on foreign profits.
• Bankruptcy fallout for Chrysler lenders, dealers. Chrysler's dealership network is on the verge of collapse as uncertainty about Chrysler's future drives already-scarce consumers away. Meanwhile, secured lenders who oppose Chrysler's bankruptcy plan have asked for their identities to be kept secret after some received death threats. Chrysler itself received court permission to use $4.5B in government loans for bankruptcy financing, and expects to be profitable again by 2012.
• Antitrust probe on Apple, Google. The Federal Trade Commission is investigating whether Apple (AAPL) and Google (GOOG) violated antitrust laws with the overlap of directors on their boards. Arthur Levinson and Google CEO Eric Schmidt sit on the boards of both companies, leaving room for antitrust regulators to intervene if their presence reduces competition.
• Alcatel-Lucent widens loss. Alcatel-Lucent (ALU) saw its Q1 loss more than double to €402M ($537.5M) from €181M the year before, as demand for telecommunications equipment slumped. This marked the company's tenth consecutive quarterly deficit. CEO Ben Verwaayen said the company has no plans to leave the business of making wireless-communications equipment but acknowledged this "will be a year of transition" and "taking appropriate actions." Shares -2.7% premarket (7:00 ET).
• Raising the bar on failed bank reviews. With so many U.S. banks failing (32 to date in 2009), government watchdogs want to change the law so that a review is required only if a bank's failure costs the FDIC $300M or more. Currently, a review must be done if a bank failure costs the FDIC $25M or more, which has created a heavy workload of 'material loss reviews' of failed banks.
• Kindle tackles textbooks. Amazon (AMZN) is reportedly planning to unveil a new version of Kindle tomorrow aimed at publishers of periodicals and academic textbooks. The new e-reader will, among other features, likely have a larger screen and a more fully functional web browser. Amazon has already worked out a deal with several publishers to make their textbooks available in e-format.
• ArcelorMittal shelves steel bid. ArcelorMittal (MT) has suspended a potential $8B investment in Indonesian steelmaking facilities, after over a year of stalled negotiations. The deal was meant to capture key supplies of iron ore and reduce ArcelorMittal's reliance on big suppliers like Rio Tinto (RTP) and BHP Billiton (BHP).
• TALF gets a boost. The Federal Reserve's TALF program is making some progress, with a $5B JPMorgan Chase (JPM) bond offering backed by credit-card loans that is eligible for the program. The JPMorgan deal is the largest to date of the TALF-eligible offerings, and is one of six deals due to be sold today.
• Loss but no aid expected for AIG. AIG (AIG) is expected to post a Q1 loss when it reports on Thursday, but reportedly won't need a new capital injection from the government. If this is true, it will be the first quarterly results announcement since AIG's September bailout that is not coupled with government aid.
• Aussies hold rate steady. Australia's central bank left its benchmark interest rate unchanged at 3%, as largely expected. The bank is waiting to see whether the lowest borrowing rates in nearly 50 years, coupled with government spending, will be enough to pull the economy out of its recession.
• Construction spending improves (.pdf). Construction spending rose 0.3% in March vs. an expected 1.6% fall and last month's 1% fall (revised). For the quarter, spending fell 10.9%.
• Home sales beat expectations. Pending Home Sales rose 3.2% in March, vs. consensus of 0% and previous sales of +2% (revised). NAR chief economist Lawrence Yun said the increase could be the "leading edge" of first-time buyers taking advantage of cheap prices and the $8,000 tax credit.

Earnings: Tuesday Before Open

• Archer-Daniels-Midland (ADM): FQ3 EPS of $0.37 misses by $0.12. Revenue of $14.8B (-20.7%) vs. $16.9B. (PR)
• Automatic Data Processing (ADP): FQ3 EPS of $0.80 in-line. Revenue of $2.4B (-2.2%) in-line. (PR)
• Avon Products (AVP): Q1 EPS of $0.27 misses by $0.06. Revenue of $2.2B (-12.9%) vs. $2.1B. (PR)
• Brookfield Asset Management (BAM): Q1 EPS of $0.15 misses by $0.01. Revenue of $2.65B (-17.4%) vs. $1.61B. (PR)
• Cincinnati Bell (CBB): Q1 EPS of $0.12 beats by $0.01. Revenue of $625.5M (-3.5%) vs. $345M. (PR)
• Cimarex Energy (XEC): Q1 EPS of $0.09 misses by $0.08. Revenue of $209M (-56.2%) vs. $232M. (PR)
• Cognizant Technology Solutions (CTSH): Q1 EPS of $0.38 beats by $0.01. Revenue of $746M (+16%) vs. $734M. (PR)
• Constellation Energy Group (CEG): Q1 EPS of $0.74 beats by $0.04. Revenue of $3.1B (-16.2%) vs. $4.4B. (PR)
• CVS (CVS): Q1 EPS of $0.55 beats by $0.01. Revenue of $23.4B (+9.7%) vs. $23.6B. (PR)
• Denbury Resources (DNR): Q1 EPS of $0.19 in-line. Revenue of $173.7M (-45.2%) vs. $241.4M. (PR)
• Diamondrock Hospitality Company (DRH): Q1 EPS of $0.16 beats by $0.03. Revenue of $118.5M (-10.8%) vs. $114M. (PR)
• Duke Energy (DUK): Q1 EPS of $0.28 misses by $0.04. Revenue of $3.3B (-0.7%) vs. $3.4B. (PR)
• Emerson Electric (EMR): FQ2 EPS of $0.49 misses by $0.04. Revenue of $5.1B (-15.5%) in-line. (PR)
• FirstEnergy (FE): Q1 EPS of $1.02 beats by $0.13. (PR)
• Foundation Coal (FCL): Q1 EPS of -$0.10 misses by $0.06. Revenue of $395M (-2.9%) vs. $401M. (PR)
• Health Net (HNT): Q1 EPS of $0.41 beats by $0.06. Revenue of $3.9B (+2.5%) in-line. Shares +2.6% premarket (8:40 ET). (PR)
• Hewitt Associates (HEW): FQ2 EPS of $0.60 beats by $0.05. Revenue of $762M (-3.5%) vs. $754.5M. (PR)
• IntercontinentalExchange (ICE): Q1 EPS of $1.09 beats by $0.14. Revenue of $232M (+12.1%) vs. $230M. (PR)
• Kraft Foods (KFT): Q1 EPS of $0.45 beats by $0.05. Revenue of $9.4B (-6.5%) vs. $9.7B. Shares +3.0% premarket (7:30 ET). (PR)
• Legg Mason (LM): FQ4 EPS of -$2.29 beats by $0.04. Revenue of $617M (-42.3%) vs. $611M. (PR)
• Louisiana-Pacific (LPX): Q1 EPS of -$0.29 beats by $0.13. Revenue of $205M (-41.4%) vs. $245M. (PR)
• Macerich Company (MAC): Q1 EPS of $1.16 beats by $0.10. Revenue of $211M (-3.1%) vs. $201M. (PR)
• Marvel Entertainment (MVL): Q1 EPS of $0.57 beats by $0.21. Revenue of $197M (+75%) vs. $136M. (PR)
• Molson (TAP): Q1 EPS of $0.53 beats by $0.20. Revenue of $559M (-58.8%) vs. $568M. Shares +6.5% premarket (8:45 ET).(PR)
• Penske Automotive Group (PAG): Q1 EPS of $0.11 beats by $0.08. Revenue of $2.2B (-32%) in-line. (PR)
• PetroQuest Energy (PQ): Q1 EPS of -$1.36 misses by $1.40. Revenue of $59M (-22.4%) in-line. (PR)
• Pinnacle West Capital (PNW): Q1 EPS of -$0.29 misses by $0.17. Revenue of $629M (-8.6%) vs. $699M. (PR)
• Precision Castparts (PCP): FQ4 EPS of $1.87 misses by $0.01. Revenue of $1.6B (-9.2%) vs. $1.8B. (PR)
• Progress Energy (PGN): Q1 EPS of $0.64 beats by $0.03. Revenue of $2.4B (+18.2%) vs. $2.2B. (PR)
• Radian Group (RDN): Q1 EPS of -$2.69 misses by $1.03. Net loss is "primarily attributable to unrealized mark to market losses on derivatives and the continued increase in mortgage insurance defaults." (PR)
• Spectra Energy (SE): Q1 EPS of $0.33 in-line. Revenue of $1.4B (-13.5%) in-line. (PR)
• St. Joe (JOE): Q1 EPS of -$0.12 misses by $0.10. Revenue of $21.6M (-81.5%) vs. $33.3M. (PR)
• Teva Pharmaceutical Industries (TEVA): Q1 EPS of $0.71 beats by $0.03. Revenue of $3.1B (+22.4%) vs. $3.4B. (PR)
• Valeant Pharmaceuticals (VRX): Q1 EPS of $0.46 beats by $0.23. Revenue of $178M (+17%) vs. $175M. Shares +5.6% premarket (8:15 ET). (PR)
• Wisconsin Energy (WEC): Q1 EPS of $1.20 beats by $0.18. Revenue of $1.40B (-2.2%) vs. $1.45B. (PR)
• W&T Offshore (WTI): Q1 EPS of -$0.54 misses by $0.01. Revenue of $117M (-67.1%) vs. $122M. (PR)

Earnings: Monday After Close

• American Financial Group (AFG): Q1 EPS of $1.11 beats by $0.15. Sees full-year EPS of $3.75-4.05 vs. $3.72. Shares +9.7% AH. (PR)
• Chesapeake Energy (CHK): Q1 EPS of $0.46 misses by $0.02. Revenue of $2B (+23.8%) vs. $2.2B. Shares -6% AH. (PR)
• D.R. Horton (DHI): FQ2 EPS of -$0.34 misses by $0.04. Revenue of $775M (-52.3%) vs. $817M. Shares -1.2% AH. (PR)
• EOG Resources (EOG): Q1 EPS of $0.53 misses by $0.06. Revenue of $1.16B (+2.1%) vs. $0.98B. Shares +0.9% AH. (PR)
• Extra Space Storage (EXR): Q1 FFO of $0.23 misses by $0.26. Revenue of $69.3M (+5.5%) vs. $67.1M. Sees full-year FFO of $0.99-1.03 vs. $1.21. Shares -3.7% AH. (PR)
• FMC Corp. (FMC): Q1 EPS of $1.22 in-line. Revenue of $690M (-8%) vs. $790M. Shares -6.2% AH. (PR)
• Forest Oil (FST): Q1 EPS of $0.29 beats by $0.13. Revenue of $195M (-48.3%) vs. $257M. Shares flat AH. (PR)
• Health Care REIT (HCN): Q1 FFO of $0.81 beats by $0.02. Revenue of $144M (+14%) in-line. (PR)
• Hill-Rom (HRC): FQ2 EPS of $0.27 beats by $0.12. Revenue of $337M (-10.1%) vs. $334M. Full-year guidance in-line. (PR)
• Hologic (HOLX): FQ2 EPS of $0.29 beats by $0.02. Revenue of $402M (-6.7%) vs. $405M. Sees FQ3 EPS in-line, and revenue of $390-400M vs. $409M consensus. Shares -10.3% AH. (PR)
• McKesson (MCK): FQ4 EPS of $1.23 beats by $0.08. Revenue of $26.22B vs. $27.3B. Shares -3.4% AH. (PR)
• MGM Mirage (MGM): Q1 EPS of -$0.06 beats by $0.01. Revenue of $1.5B (-20.4%) vs. $1.58B. Says cancellations have tapered off and business seems to be stabilizing. Shares +4.8% AH. (PR)
• Principal Financial Group (PFG): Q1 EPS of $0.63 misses by $0.03. Revenue of $2.18B vs. $2.51B. Assets under management down 22% from a year ago to $237B. Shares +0.4% AH. (PR)
• St. Mary Land (SM): Q1 EPS of -$0.01 misses by $0.15. Revenue of $199M (-45%) vs. $196M. Shares flat AH. (PR)
• Vulcan Materials (VMC): Q1 EPS of -$0.29 misses by $0.22. Revenue of $600M (-26.6%) vs. $690M. -2.4% AH. (PR)

Today's Markets

Overseas markets moved higher Tuesday. Futures are up moderately.

• Asia: Hang Seng +0.3% to 16,430. Shanghai +0.29% to 2,567. BSE -0.03% to 12,131. Nikkei closed.
• Europe at midday: London +2.8% after being closed Monday. Paris +0.3%. Frankfurt +0.04%.
• Futures: Dow +0.1% to 8368. S&P flat at 903. Nasdaq +0.1%. Crude -0.2% to $54.38. Gold +0.1% to $904. Euro -0.15% vs. dollar. Yen -0.15%. Pound +0.5%. 30-year Tsy -0.2%.

Tuesday's Economic Calendar

• 6:45 Fed's Rosengren speaks to the Institute of Regulation and Risk
  7:45 ICSC Retail Store Sales
  8:55 Redbook
  10:00 Bernanke speaks on the economic outlook
  10:00 ISM Non-Manufacturing Survey
  1:15 PM Fed's Stern speaks on the view from the Fed
  5:00 PM ABC Consumer Confidence Index
  7:00 PM Fed's Yellen speaks on the financial turmoil
• Notable earnings before Tuesday's open: ADM, ADP, ALU, AVP, AYE, BAM, CBB, CEG, CTSH, CVS, DNR, DRH, DUK, EMR, FCL, FE, HEW, HNT, ICE, JOE, KFT, LM, LPX, MAC, MVL, PAG, PCP, PGN, PNW, PQ, RDN, SE, SRE, TAP, TEVA, UNT, VRX, VTR, WEC, WTI, WY, WYNN, XEC
• Notable earnings after Tuesday's close: ARM, ATML, BRE, CEDC, CEPH, CRL, CTX, CUZ, DEI, DIS, ERTS, HLX, HRS, KGC, LNC, LVS, ONNN, PHM, PXD, UDR, UPL, VCLK, XCO

Seeking Alpha editor Eli Hoffmann contributed to this post.

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Comments

[doubleguns:]

I would have to read it before I could edit it.

May 05 08:53 AM

[Bestsolutio...:]

Please do read it.
Three minutes could be worth $150 billion dollars to
US TAXPAYERS over the next ten years as revenue
and THE AMERICAN HOUSING MARKET STABALIZED
As the FED RESERVE CHAIRMAN said when asked ,"How much money is expected to be lost due to this financial crisis?
(A Fox News Interview)
The reply was ,"We won't know untill we see where the housing market stabalizes"
What has that market loss?4 to 8 Trillion?
I believe it is worth the three minutes,even it you were to prove
IT ISN"T POSSIBLE!

May 05 09:23 AM

[AndrewBaker:]

Whilst it may be that we've been near the bottom or even at it, this recent bounce has a big leg down to come, especially in the financials. So do expect a reversal soon.

May 05 09:25 AM

[notsosmart:]

another downer coming.

May 05 09:36 AM

[bobbobwhite:]

This is not "the venue" for such long posts. Condense it to its core essence. Or, write it at eHow and possibly get paid for it.


On May 05 08:49 AM Bestsolutionsfl wrote:

> Can anyone out there edit this to 500 words or less and post it.
>
> No one has said it would not work,only that it is to long.
> HOW IS THIS FOR PPIP!?
>
> 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.
>
> 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.
> Revised 5/05/09
> PITI payment .........$500
> (Using 10 yr Treas Rate @3%)
>
> 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",then RESTITUTION.
>
>
> 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. THIS IS MERELY A HOME
> EQUITY CONVERSION.
> This is a 100% asset based loan that will probable increase invalue
> in a very short time.
> Legislation is already in place for GSE agency to do this and also
> funding is already approved (seekingalpha.com/symbo...).
> (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. If 3% factor is 5.00 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!!! <br/>
>
> 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 <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 a wait 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 a ol dot com
>
>
> ADDENDUM:NOW that all homeowners are resuced at a profit we MAY,we
> COULD make a profit by helping the banks.
>
> **Optional help for 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 ($7 00 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 rep lacement 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 PL AN"
> 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.
> PPIP
> SIMPLY GUARANTEE THE NEW LOAN!
> Already legislated.HOME EQUITY CONVERSION
> guarantees TRILLIONS!

May 05 12:09 PM

[woodsey:]

Dear friend, Bestsolutionsfl,

I am a longtime member of the ACLU. I shall defend to the death your right to dream and to publish.

May 05 12:12 PM

[sticktoitiv...:]

Bestsolutionsfl

Condense it yourself. You're the one that wants it done. Not even I am THAT lazy.

May 05 01:32 PM

[carey_jim:]

Read the biographies of Thomas Edison, Alexander Graham Bell, Henry Ford, Bill Gates, Steve Jobs and others ....
There is no formula.


On May 05 11:32 AM MICHAEL WILEY wrote:

> Please Post and Please send copy to President Obama.
> I'm an entrepreneur from Michigan and a 4-Time Gold Medal Winner
> on Inventions, and I received The First Place Gold Medal for The
> United States Of America at The World Genius Convention in Tokyo
> Japan. I Have some Patents issued on some of these Ideas, and I'm
> working on patents for the rest of them.
>
> #1. A new Invention that will Save Police Officers Lives, We loose
> a Police Officer every 47 hrs. here in the US.
>
> #2 A device that will help Prevent Multiple Vehicle Accidents, <br/>100
> car-200 car, 500 car pileups. This unit will save Lives.
>
> #3. An device that can help Prevent High Speed Police Chases.
> This will Save Lives Every Year.
>
> #4. An Invention that will Help Contain and Control Wild Fires,<br/>Like
> in California, So many people loose their Loved Ones, Homes and
> Property. This will also help save the lives of the Public and The
> Lives of Fire Fighters, This will save Billions of Dollars each year
> from these Tragic Wild Fires. ( This idea should also be addressed
> to Governor Arnold Schwarzenegger)
>
> #5. A new Semi Trailer that will Revolutionize the Trucking Industry.
> This Trailer will save Hundreds of Millions of Dollars
> with the transport company's.
>
> #6. A unit that will Protect Internet users from Internet Fraud and
> Identity Fraud. This will save approximately 10 Billion a year.<br/>
>
> #7. An Invention that will Prevent 95% of all Bank Robberies , <br/>The
> US had over 9000 Bank Robberies last year, that’s over 25 a day.
> We can Help Save Lives , Property, Cash, Reduce Hostage Situations,
> and Police Officers Lives. We can Have this Up &amp; Running with-in
> 6-9 Months
> Several more to list.
>
> I'm Opening a Research &amp; Development Company and I need to find
> a Company or an Investor that wants to share in a 50/50 Split on
> Royalties and income from this Facility.
>
> A market survey last year estimated that they were going to build
> and import approximately 24.5 Million vehicles this year. When we
> met with Officials In Washington DC, They advised us to meet with
> the National Highway Traffic Safety Administration, because all cars
> should have #2. and #3 Safety Devises Listed Above installed on every
> car Build or Sold in the US.
>
> The cost of the Product to be Installed is about $ 52.00.
> We are looking for $100.00 per unit in Royalties.
> Simple Math 24.5 Million Vehicles X $100.00 = 2.45 Billion a Year
> in Royalties. We want to Manufacture as many ideas as Possible here
> in the U.S.A. We know we have to adjust the number of vehicles now
> because of the Economy.
>
> My Question is-
> HOW DO I PROCEED AND MAKE THIS HAPPEND?.
> More Information on globalinventionsolutio...
> Click on Company Overview
> Michael Wiley
> [e-mail]

May 05 02:27 PM

[bbowen7:]

A good day for Rachel; a bad day for the readers.

May 05 02:32 PM

[Joseph Sherman:]

Kindle tackles textbooks. - a wider buy in towards the mass markets. Will paper books go the way of the dinosaurs?

May 05 03:08 PM

[doubleguns:]

I have decided to edit this down to under 500 words for you......

GARBAGE!!!!


On May 05 09:23 AM Bestsolutionsfl wrote:

> Please do read it.
> Three minutes could be worth $150 billion dollars to
> US TAXPAYERS over the next ten years as revenue
> and THE AMERICAN HOUSING MARKET STABALIZED
> As the FED RESERVE CHAIRMAN said when asked ,"How much money is
> expected to be lost due to this financial crisis?
> (A Fox News Interview)
> The reply was ,"We won't know untill we see where the housing market
> stabalizes"
> What has that market loss?4 to 8 Trillion?
> I believe it is worth the three minutes,even it you were to prove
>
> IT ISN"T POSSIBLE!

May 05 09:37 PM

[doubleguns:]

More Garbage!!!


On May 05 11:32 AM MICHAEL WILEY wrote:

> Please Post and Please send copy to President Obama.
> I'm an entrepreneur from Michigan and a 4-Time Gold Medal Winner
> on Inventions, and I received The First Place Gold Medal for The
> United States Of America at The World Genius Convention in Tokyo
> Japan. I Have some Patents issued on some of these Ideas, and I'm
> working on patents for the rest of them.
>
> #1. A new Invention that will Save Police Officers Lives, We loose
> a Police Officer every 47 hrs. here in the US.
>
> #2 A device that will help Prevent Multiple Vehicle Accidents, <br/>100
> car-200 car, 500 car pileups. This unit will save Lives.
>
> #3. An device that can help Prevent High Speed Police Chases.
> This will Save Lives Every Year.
>
> #4. An Invention that will Help Contain and Control Wild Fires,<br/>Like
> in California, So many people loose their Loved Ones, Homes and
> Property. This will also help save the lives of the Public and The
> Lives of Fire Fighters, This will save Billions of Dollars each year
> from these Tragic Wild Fires. ( This idea should also be addressed
> to Governor Arnold Schwarzenegger)
>
> #5. A new Semi Trailer that will Revolutionize the Trucking Industry.
> This Trailer will save Hundreds of Millions of Dollars
> with the transport company's.
>
> #6. A unit that will Protect Internet users from Internet Fraud and
> Identity Fraud. This will save approximately 10 Billion a year.<br/>
>
> #7. An Invention that will Prevent 95% of all Bank Robberies , <br/>The
> US had over 9000 Bank Robberies last year, that’s over 25 a day.
> We can Help Save Lives , Property, Cash, Reduce Hostage Situations,
> and Police Officers Lives. We can Have this Up &amp; Running with-in
> 6-9 Months
> Several more to list.
>
> I'm Opening a Research &amp; Development Company and I need to find
> a Company or an Investor that wants to share in a 50/50 Split on
> Royalties and income from this Facility.
>
> A market survey last year estimated that they were going to build
> and import approximately 24.5 Million vehicles this year. When we
> met with Officials In Washington DC, They advised us to meet with
> the National Highway Traffic Safety Administration, because all cars
> should have #2. and #3 Safety Devises Listed Above installed on every
> car Build or Sold in the US.
>
> The cost of the Product to be Installed is about $ 52.00.
> We are looking for $100.00 per unit in Royalties.
> Simple Math 24.5 Million Vehicles X $100.00 = 2.45 Billion a Year
> in Royalties. We want to Manufacture as many ideas as Possible here
> in the U.S.A. We know we have to adjust the number of vehicles now
> because of the Economy.
>
> My Question is-
> HOW DO I PROCEED AND MAKE THIS HAPPEND?.
> More Information on globalinventionsolutio...
> Click on Company Overview
> Michael Wiley
> [e-mail]

May 05 09:40 PM

[Finance Fan...:]

I think that you're first list that banks need more capital is most important. I agree as we have seen many of them issue more preferred and common stock, as there seems to be no other way to get capital.

The problem is, that much of the incoming capital is going straight to reserves in order to prepare for the upcoming commercial real estate destruction, so that capital is not reaching the consumer...A big mess.

May 06 01:54 AM

[hellothere4:]

If you read the article about the banks involvement with subprime initiators, note that it is very carefully crafted, and leaves out some important details. Figures add "subprime" and "high interest" which likely includes Alt-A mortgages. It suggests the big banks "owned" but also includes if they merely securitized debt from these issuers - there is a big difference, and it is misleading.

Read this to counter balance: www.econ.tcu.edu/quinn...

FNM all by itself end of June owned or guaranteed $388 billion subprime and Alt-A (no doc on income) loans. To say nothing of counterpart FRE, which may well have more if you look at their losses. The report on the banks puts top 10 subprime issuers total at $665 billion.

I think these figures suggest quite clearly FNM had an equal hand as the banks in facilitating the subprime issuers. Curious the Center for Integrity failed to mention....

Know what the total of gov't funding being extended to the GSE's is thus far? Hint...it exceeds that of the banks combined....

May 06 10:48 AM

[Bestsolutio...:]

So where is the challenge.??
Would an EXTREMELY LOW AFFORDABLE PROFITABLE
MORTGAGE PAYMENT not take all these homes off the market.??
Would an EXTREMELY LOW AFFORDABLE PROFITABLE
MORTGAGE PAYMENT not become a AAA+ rated ASSET?
Call it garbage,call it idiotic,call it what ever you wish,but to be credable show that the solutions can not be
_"a low affordable rate mortgage with a long term payback
does not work"

DO THE MATH:
10 years equals 120 payments
USE the 120 payments to pay
(A) the interest for the TOTAL
Note for the ten years.
(B) 15% of the total amount
(C) 15% for INS and Taxes
That comes to P.I.T.I.
PURE SIMPLE MATH .MATH does not lie.
There is of course a balance of 85% of the note UNPAID
at the end of payment 120.
That becomes payment 121 a new mortgage for 30 years
for that 85%.....or if 5% profit desired it becomes a new note for
90%
MATH SAYS "If this is a $3 Trillion problem taxpayers will profit
$150 Bilion Dollars.
Oh,the purity of math.
But then again if you cannot do the math just call it garbage!
BASILOVECCHIO

May 07 12:40 PM