Comments on: True American Idol: Subprime Mortgage Lenders Send off a Blast Heard Around the World. http://www.doctorhousingbubble.com/true-american-idol-subprime-mortgage-lenders-send-off-a-blast-heard-around-the-world/ How I Learned to Love Southern California and Forget the Housing Bubble Sat, 22 Nov 2008 11:10:19 +0000 http://wordpress.org/?v=2.2.2 By: Jessica http://www.doctorhousingbubble.com/true-american-idol-subprime-mortgage-lenders-send-off-a-blast-heard-around-the-world/#comment-312 Jessica Mon, 26 Feb 2007 18:47:00 +0000 http://www.doctorhousingbubble.com/true-american-idol-subprime-mortgage-lenders-send-off-a-blast-heard-around-the-world/#comment-312 LOL. What a great anaolgy comparing the housing bubble with the Titanic. Very entertaining article - thank you.<br/><br/>The big question that's on a lot of people's minds is "what effect is the housing bubble going to have on the economy in the United States". Are we headed for a full recession?<br/><br/>Love to hear all your thoughts.<br/><br/>Jessica. LOL. What a great anaolgy comparing the housing bubble with the Titanic. Very entertaining article - thank you.

The big question that’s on a lot of people’s minds is “what effect is the housing bubble going to have on the economy in the United States”. Are we headed for a full recession?

Love to hear all your thoughts.

Jessica.

]]> By: Dr Housing Bubble http://www.doctorhousingbubble.com/true-american-idol-subprime-mortgage-lenders-send-off-a-blast-heard-around-the-world/#comment-307 Dr Housing Bubble Sat, 24 Feb 2007 02:19:00 +0000 http://www.doctorhousingbubble.com/true-american-idol-subprime-mortgage-lenders-send-off-a-blast-heard-around-the-world/#comment-307 Tom:<br/><br/>Sound like a lot of CYA behavior. Hate to say but this year we’re going to hear a lot of this going on. Even Novastar was talking about them not seeing the extent of loan defaults as they faced; well what do you expect when items change so quickly and the environment is front-loaded with such risky loans? What more can we say except that this is all predictable but Joe and Susie public are caught up with American Idol and aren’t paying attention to the fact that there loan just reset. Tom:

Sound like a lot of CYA behavior. Hate to say but this year we’re going to hear a lot of this going on. Even Novastar was talking about them not seeing the extent of loan defaults as they faced; well what do you expect when items change so quickly and the environment is front-loaded with such risky loans? What more can we say except that this is all predictable but Joe and Susie public are caught up with American Idol and aren’t paying attention to the fact that there loan just reset.

]]> By: Dr Housing Bubble http://www.doctorhousingbubble.com/true-american-idol-subprime-mortgage-lenders-send-off-a-blast-heard-around-the-world/#comment-306 Dr Housing Bubble Sat, 24 Feb 2007 02:16:00 +0000 http://www.doctorhousingbubble.com/true-american-idol-subprime-mortgage-lenders-send-off-a-blast-heard-around-the-world/#comment-306 Irvinerenter,<br/><br/>We are seeing the first tip of the iceberg and that article does a good job comparing the two. Once you see how bad this thing is you realize that it is too late. The subprime collapse wouldn’t be so bad if we maintained tighter lending standard. However, in the last few years close to 20%+ of all loans is in the subprime market. And lenders by proxy will also tighten on safer loans simply by them overshooting on the conservative side, it’ll be in their nature.<br/><br/>All of this was predicted but no one can see all the damage until this train wreck comes to a slow and painful stop. Irvinerenter,

We are seeing the first tip of the iceberg and that article does a good job comparing the two. Once you see how bad this thing is you realize that it is too late. The subprime collapse wouldn’t be so bad if we maintained tighter lending standard. However, in the last few years close to 20%+ of all loans is in the subprime market. And lenders by proxy will also tighten on safer loans simply by them overshooting on the conservative side, it’ll be in their nature.

All of this was predicted but no one can see all the damage until this train wreck comes to a slow and painful stop.

]]> By: tom stone http://www.doctorhousingbubble.com/true-american-idol-subprime-mortgage-lenders-send-off-a-blast-heard-around-the-world/#comment-305 tom stone Sat, 24 Feb 2007 01:51:00 +0000 http://www.doctorhousingbubble.com/true-american-idol-subprime-mortgage-lenders-send-off-a-blast-heard-around-the-world/#comment-305 I remember when the lenders rep came into our shop to pitch NINA loans for the first time"with these loans,unlike stated,you won't have to lie about the income,and thus there is much less liability,and the margins are better too" i do not remember who the rep was,but how i avoided spitting my coffee all over the confernce table is beyond me.back in the 60's there was a period of several years when institutional investors would not touch mortgage paper.years.when i look at the probable losses involved in this fiasco,i expect that there will be a complete,and justified loss of confidence in the risk rating agencies.the money for jumbo loans can go away almost instantly,except for the very few who will qualify under what will be overstrict lending criteria.the lending criteria are almost always too loose or too strict,it takes some very smart people with authority to set reasonable standards.it will not be boring this year. I remember when the lenders rep came into our shop to pitch NINA loans for the first time”with these loans,unlike stated,you won’t have to lie about the income,and thus there is much less liability,and the margins are better too” i do not remember who the rep was,but how i avoided spitting my coffee all over the confernce table is beyond me.back in the 60’s there was a period of several years when institutional investors would not touch mortgage paper.years.when i look at the probable losses involved in this fiasco,i expect that there will be a complete,and justified loss of confidence in the risk rating agencies.the money for jumbo loans can go away almost instantly,except for the very few who will qualify under what will be overstrict lending criteria.the lending criteria are almost always too loose or too strict,it takes some very smart people with authority to set reasonable standards.it will not be boring this year.

]]> By: IrvineRenter http://www.doctorhousingbubble.com/true-american-idol-subprime-mortgage-lenders-send-off-a-blast-heard-around-the-world/#comment-304 IrvineRenter Sat, 24 Feb 2007 01:36:00 +0000 http://www.doctorhousingbubble.com/true-american-idol-subprime-mortgage-lenders-send-off-a-blast-heard-around-the-world/#comment-304 There is a post at PrudentBear.com analogizing the sub-prime disaster with the Titanic hitting an iceberg.<br/><br/>http://www.prudentbear.com/articles/show/355<br/><br/>Very well written article. The collapse of the ABX indices and the resulting collapse of sub-prime mortgage lending is hitting the iceberg.<br/><br/>If you remember the movie Titanic, hitting the iceberg was no big deal. Most didn't even realize something went wrong. A few "in the know" knew what it meant. I feel like we are those few that knew the ship was going down right after it hit the iceberg. Nothing is really different right now, but the Titanic IS going down, we know exactly why it is going down, and there is nothing anyone can do to stop it. There is a post at PrudentBear.com analogizing the sub-prime disaster with the Titanic hitting an iceberg.

http://www.prudentbear.com/articles/show/355

Very well written article. The collapse of the ABX indices and the resulting collapse of sub-prime mortgage lending is hitting the iceberg.

If you remember the movie Titanic, hitting the iceberg was no big deal. Most didn’t even realize something went wrong. A few “in the know” knew what it meant. I feel like we are those few that knew the ship was going down right after it hit the iceberg. Nothing is really different right now, but the Titanic IS going down, we know exactly why it is going down, and there is nothing anyone can do to stop it.

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