joker

Big New Housing Problem: Mortgage Insurers Back Off

The entire mortgage industry, especially mortgage insurance industry is a bust without government's backing/subsidizing. Think about it: with default rate as high as above 10%, the basic logic for insurance is that, an insurer has to charge 10% and above of insured amount to at least break even, not to mention to make a profit - mortgage lenders could a little lower since there is residual values.

However, MI rates are set by statement governments, and currently their charged rates are no way near the required break-even points. Therefore all MIs are in losing / bankruptcy positions.

Charging 10% and above - no home buyers could afford that, even if they want. Therefore it only leaves one way for the keeping housing markets alive: government and GSEs step in to take all the lending and insuring responsibilities, even if it is obviously by doing so, they're going to lose tons of money.

Attention Locusts: The Party Is Moving to Merrill and AIG

I don't think therer is anything wrong with rumors and propoganda. Spread negative rumors, you make money on short side; spread positive rumors, you make money on the long side, of course at the cost of those caught in short :-). longing is a fine way to make a living as well.

Attention Locusts: The Party Is Moving to Merrill and AIG

It would be very satisfying to spoil those hedge funds' fun: Let's spread out counter-rumors all over the places, like saying LEH already got $10 billion infusion from Russian banks, MER got bid @ $50 from an Saudi funds, AIG has actually found that they have all their CDS hedged but has been buried in their attic somewhere and now re-discovered, etc.

It won't take too much since as those guys fighting for the exit, they will push up prices just as they pushed down them in the first place.

That surely is fun. Ha-ha-ha...

Breaking Down the Case-Shiller Index

This dude is ridiculous! You can a month-over-month decline of 0.9% "small"? Well, how about you have this "small" declines in your house and portfolios for 2 years? You will be a real "dude" if you still can the 0.9% decline "small" after you cumulate for 2 years.

NextWave Wireless: Spectrum Options for Other Operators

It is way too optimistic! The value of those spectrum is in the eye of beholder / belivers, just like the value of houses - a year ago's houses could fetch $1 million and now sitting in markets with a tag 25% down and still now takers!

So if now buyer really have to buy those spectrum immediately, WAVE will be in BIG trouble and face bankruptcy. And potential buyer, knowing the fate of WAVE, could simply wait for couple of years and after WAVE belly up, then scoop their needed spectrums cheaply.