Let Bankers Eat Cake. Millions More Foreclosures Coming, Bankruptcy for the Rich, IO Loans, ARMS Recasts for 2010 $134B: No Wonder my Head Hurts!
*Just some mid morning happy news. My little brother got a refi with World Bank(Wachovia bought them and then went belly up so Wells Fargo now owns the whole shabang). His broker lied about his income and he was clearly not eligible for a refi in the first place, and was sold a Pick a Payment Loan. The subtlety of the Treasury's remarks regarding some people took on more than they could afford just pisses me off to no end. The government had no oversight of mortgage brokers, and the oversight over the banking industry that they did have was just pushed aside by the closing of shady eyes, so now my little brother and his family may lose their house because some scheister talked them into (i'm a lawyer and don't even understand the fine print of all these things) some exotic derivative mortgage product and now the VICTIM is to blame? Fuck you.
You want to know why next year will be worse than this year? Because these greedy bastards just don't get what the hell they did. And Congress, Greenspan, Bernanke and the Banking Industry, all in that order, are to Blame. Let the market crash then you conniving smarty pants in the room sons of bitches. Otherwise you will have more than tea parties and pitchforks on your hands. Because the only way to fix something that's BROKEN, is to throw it away and start over.
Even David Rosenberg is just as crazed about the market going up beyond the clouds at the mere mention of some green weed that they don't see the elephant in the room.
All of the stuff below should be scaring the bejesus out of you and if not, then you are just as STUPID as they are. I'M MAD AS HELL AND I'M NOT GONNA TAKE IT ANYMORE!
Those ffing bankers at the central bank should have been telling Wall Street to sell 40 year mortgages from the gitgo, instead of all these exotic loans that investors would buy. And that's the crux of it folks. No investor looking for yield higher than a 10year would have been interested in buying 40yr mortgage backed CDO's. So I say then, let the bankers EAT CAKE!
Assistant secretary for Financial Institutions says Million More Foreclosures to Come
HUD
*interest only loans set to reset in 2013
Exotic Mortgage Resets
nytimes.com
Wealthy Families Face Bankruptcy on Real Estate Crash
Chapter 11 bankruptcies jump 73%
Fitch: $134B of U.S. Option ARM RMBS To Recast by 2011
*I know the government is trying to fix all of this by getting the banks to modify into 40 year mortgages (I have been hearing more about this as a viable alternative. Too bad they didn't do it in the first place, we wouldn't be in this mess right now. Who could afford to buy a house at $500,000 with a 30 year mortgage? NO ONE! But the help is too little and too late and will only prolong the inevitable: The Federal Government will HAVE to start bulldozing all of the inventory that investors refuse to underwrite. So strap on your seat belts folks, it's going to be a bumpy couple of years.
Mortgage Depot has a 48.65% maortgage default rate
calculatedriskblog.com
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