CM001

Obama Draws a Blank on How Banks Really Work

'Brainless..'. This is the president you are speaking and you may want to choose your words carefully.

Seriously! Knowing banking so well that his fund lost tons in what names? Between his fund investors and the citizens, citizen's got better deal.

Market Leader for Real Estate Profits

There are clearly differences and advantages. For example, Pulte focus on active-adult communities, TOL focuses on luxury market, then some builders have more land supply than others, and then some, like DHI, focus on entry level houses. So clearly there are differences. I guess you need to dig little deeper

Housing: Ingredients for Recovery

When the banking stress test was done, it is case-shiller that was used because this is no longer relevant. I am sure all those who 'foreclosed' and banks will take the 10% down from Apr 2007 peak. In any case this report helped fuel a good rally on housing stocks.

KB Homes: Frozen on the Bridge?

"Essentially they are telling you that the backlog number is no longer the predictable factor that it used to be"

The way I see is, the backlog numbers improved from 1Q to 2Q. That's all they are saying and I believe your inference here is wrong.

"Imagine what Macy’s would look like if 20% of all sales were returned."

I see the cancellation rate is improving. If you could present how the cancellation rate was in the past and compared it makes sense. If you look other builders the rate is in similar numbers. In fact even the luxury builder like Toll has 20% cancellation rate.

Hey, Congress, Guess What? WaMu's Toast

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+VE NIM means they are earning money! You have to mark an asset only when it is impaired. When homeowners are paying a mortgage and when it is not in default why mark it. Look, I am not angry about the loss. But, I am angry about the way it was taken down. It is clearly co-ordinated event. Even in banana republics, there is some integrity but there is no such thing in US financial systems

Hey, Congress, Guess What? WaMu's Toast

When I read congressman are balking at $700B figure to buy US mortgage assets and we spend more $1000B in IRAQ, I have no words to express my feelings.

Hey, Congress, Guess What? WaMu's Toast

WAMU's problem is that $26 billion you're referencing is book equity. Balance that against the fact that roughly $227 billion of their $307 billion in assets were real estate loans and more than half of that real estate portfolio was in home equity loans, adjustable-rate mortgages and subprime mortgages that are now considered risky. So they have $113 billion of the risky stuff. Last fall they shifted these assets over to hold to maturity status to avoid marking them down. Let's assume they could sell the stuff for 65 cents on the dollar to Bill Gross at PIMCO, a price he recently paid for such assets. Well, that's a $39 billion write down. Poof, there goes your $26 billion of book equity.
- WeeklyTA

No not half of their loans in sub-prime. ARM's not necessarily risky because the interest rate didn't go up. Those mortgage owners can still refinance. My point is even if a loan is risky, doesn't mean it is goign to be a complete charge-off. The house price may have fallen 10 or even 20 %, that doesn't mean WaMu is going to take a 20% hit. Lastly, they were still making +VE NIM. I am not saying everything is great. But the run on deposit was fueled by press. People were urging why there is no run on deposit.

Who is Bill Gross? I don't care. I don't care what Warren thinks. The reality is those guys really wanted these sacrifial lamps. Just for a second think that government didn't want to nationalize FNM or rather let some of their sr debt vaporize... do you think anyone would care who is Bill G....

Look if a mortgage is in default, then WaMu needs to take reserves/ charges. Simple. But after there current reserves, and charges still had $26 B equity. Then they were making money on the assets and still +VE NIM.

Hey, Congress, Guess What? WaMu's Toast

I am angry.

In my 15+ years of investing, I never felt angry in losing money. I have lost lots of money in the market, but never felt the market is rigged or angry. Today, when WaMu is taken out, I truly feel the system is rigged. Yes I have lost tons of money. Yes I was stupid to be invested in this so long. But, $26 billion equity and $310 billion assets are taken out for nothing!

Is the management stupid not to agree for a deal?
Is rating agencies stupid to double down-grade on back to back days? BTW, why no one is investigating them?
Is FDIC don't see the bailout debate? Can't they give few more days for WaMu?

The ordinary investors are massacred. Today, I truly believe, the worst capital market for small and individual investors is US. There is no one to protect individual investors. Everyone is trying to kill the individual investors, and you can do that with impunity.

Coinstar Investors Counting Pennies That Don’t Exist

The biggest challenge for the company is long-term decline in use of coins.