NEW RESIDENTIAL SALES IN NOVEMBER 2007
Sales of new one-family houses in November 2007 were at a seasonally adjusted annual rate of 647,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 9.0 percent ( ±13.9%)* below the revised October rate of 711,000 and is 34.4 percent ( ±7.9%) below the November 2006 estimate of 987,000.
The median sales price of new houses sold in November 2007 was $239,100; the average sales price was $293,300. The seasonally adjusted estimate of new houses for sale at the end of November was 505,000. This represents a supply of 9.3 months at the current sales rate.
Hey the woods have only been enter though .............
Those CDO's we keep hearing about are the ones linked to mortgages , they've got near the tree line and stepped on the first mine . As the widening of the tier structure in the " plan " eventually widens , which should be pretty quick if the average mortgage payer decides to stop paying utilities and gets the FICO score down enough for entry .
Then there's the "other " batch of CDO's that are made up of the fantastic plastic debts . Even here at home you can guarantee your high end credit card debt is held with a batch of others in a CDO .
So far , I have been able to account for $1.3 Trillion USD in total CDO debt related to both above mentioned . The reported figures or administrative data ( spin ) is well under that .
Dec. 31 (Bloomberg) -- Defaults on privately insured U.S. mortgages rose 35 percent in November to a record, an industry report today showed, adding to evidence the U.S. housing slump is deepening.
The number of insured borrowers falling more than 60 days late on payments jumped to 61,033 last month from 45,325 in November 2006, according to data from members of the Washington- based Mortgage Insurance Companies of America. The missed payments, often a prelude to foreclosure, represented a 2.9 percent increase from October.
``This is another data point that suggests that the mortgage insurers are in for a tough slog for 2008,'' said David Havens, a credit analyst at UBS AG in Stamford, Connecticut. ``Continued deterioration is likely to spur higher claims. And higher claims activity may result in some companies needing to raise money.''
Home prices fell 6.1 percent in 20 U.S. metropolitan areas in October, according to S&P/Case-Shiller. Mortgage insurance compensates lenders for losses on bad loans as falling home prices make it harder for borrowers to refinance.
MGIC Investment Corp., the largest U.S. mortgage insurer, and No. 2 PMI Group Inc. reported losses in the July-through- September period, their first unprofitable quarter as public companies.
Merrill has $10B in write downs , Citi around $22B
It would appear we have more problems on the horizon, more news articles of concern, credit cards paying more than 20% interest with rises to come ............
House equity maxed out, now Americans are being forced to max out Credit cards to cover the shortfall.
My biggest concern, is how central banks have gone from facilitating a market, to creating a false market by pumping in heaps of liquidity, rather than letting a recession take place. ASX.G touched on it in another thread, that recession is seen as 'natural' in parts of Europe.
The money hasn`t disappeared, so where has the money pooled/settled and what or who is holding it? Any ideas anyone?
For many years the words international banker, Rothschild, Money and Gold have held a mystical type of fascination for many people around the world but particularly in the United States.
Over the years in the United States, the international bankers have come in for a great deal of criticism by a wide variety of individuals who have held high offices of public trust -- men whose opinions are worthy of note and whose responsibilities placed them in positions where they knew what was going on behind the scenes in politics and high finance.
President Andrew Jackson, the only one of our presidents whose administration totally abolished the National Debt, condemned the international bankers as a "den of vipers" which he was determined to "rout out" of the fabric of American life. Jackson claimed that if only the American people understood how these vipers operated on the American scene "there would a revolution before morning."
Congressman Louis T. McFadden who, for more than ten years, served as chairman of the Banking and Currency Committee, stated that the international bankers are a "dark crew of financial pirates who would cut a man's throat to get a dollar out of his pocket... They prey upon the people of these United States."
John F. Hylan, then mayor of New York, said in 1911 that "the real menace of our republic is the invisible government which, like a giant octopus, sprawls its slimy length over our city, state and nation. At the head is a small group of banking houses, generally referred to as 'international bankers.'"
Were these leading public figures correct in their assessment of the situation, or were they the victims of some exotic form of paranoia?
Let's examine history analytically and unemotionally and uncover the facts. The truth, as it unfolds, will prove to be eye-opening and educational to those who are seeking to more clearly understand the mind-boggling events that have been (and are) taking place on the national and international scenes.
The money hasn`t disappeared, so where has the money pooled/settled and what or who is holding it? Any ideas anyone?
ABSOLUTELY!
The person at the end of the chain is the one left servicing the debt. The people who sold the debt along the chain and took their fees and commissions and secured their capital gains have built equity.
The crisis began with the bursting of the housing bubble in the U.S. and high default rates on "subprime", adjustable rate, "Alt-A", and other mortgage loans made to higher-risk borrowers with lower income or lesser credit history than "prime" borrowers.
Thanx asx.g ....
I don`t have any formal training in economics.
On Jan. 16, JPMorgan announced it set aside an additional $395 million for troubled home-equity products in the last quarter, compared with just $125 million for subprime mortgages. Washington Mutual reported in the latest period that its bad home-equity loans and lines of credit surged by 130% from the end of 2006, forcing the bank to up losses by $967 million. Even lenders of a conservative bent, those that managed to sidestep much of the subprime mess, are getting hammered: Wells Fargo (WFC) took a recent $1.4 billion writedown, largely from home-equity lending.
Maybe this will help explain it all. (I posted it on the gold thread too, but is relevant here too.)
Constant Obligation Leveraged Originated Structured Oscillating Money
Bridged Asset Guarantees
http://bigpicture.typepad.com/commen...nt-obliga.html
AAA reratings ???????
Bond-insurer woes may trigger more write-downs
Doubts on AAA ratings for Ambac, MBIA spark turmoil in muni bond market
By Alistair Barr, MarketWatch
Last update: 6:08 p.m. EST Jan. 18, 2008
SAN FRANCISCO (MarketWatch) -- Just when you thought it was over, trouble in the $2.3 trillion bond-insurance business could trigger another wave of big write-downs from banks and brokerage firms, experts said Friday.
'The destruction of the bond insurers would likely bring write-downs at major banks and financial institutions that would put current write-downs to shame.'
”” Tamara Kravec, Banc of America Securities
http://www.marketwatch.com/news/sto...-FB70-4304-B6B4-C444A554401C}&dist=TNMostRead
I think the Fed should be watching this film clip.....
http://www.cnbc.com/id/15840232?video=625421280&play=1
For once in his life, Cramer has an incredibly smart proposal to clean up the mess - instead of a 150 Bil tax cut plan that will result in increased retail sales and further fuel inflation, remove the bond insurers....... Seems pretty logical to me, any views here?????
Cheers
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