Comments on: Subprime Ate My Homework http://housingdoom.com/2007/08/01/subprime-ate-my-homework/ Fri, 18 May 2012 02:39:21 +0000 hourly 1 http://wordpress.org/?v= By: twist http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6521 twist Thu, 02 Aug 2007 15:38:32 +0000 http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6521 AustrianEconomist- Hey- I'm opposed to lower interest rates for a couple of reasons. One, lower interest rates didn't help Japan in their real estate crisis- it won't help here. Two, Mr. Twist is an importer- if there's one thing we hate around here, it's a cheap dollar! AustrianEconomist-

Hey- I’m opposed to lower interest rates for a couple of reasons.

One, lower interest rates didn’t help Japan in their real estate crisis- it won’t help here.

Two, Mr. Twist is an importer- if there’s one thing we hate around here, it’s a cheap dollar!

]]> By: AustrianEconomist http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6520 AustrianEconomist Thu, 02 Aug 2007 09:19:29 +0000 http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6520 Suppose the Fed lowers interest rates next week because of "subdued inflationary pressures" ("officially" at least) and because of "declining credit availability to support future productivity growth" (read: subprime fallout). As a consequence the dollar would surely sink. All because of subprime and unpatriottic media such as housingdoom.com and Jim Cramer! Suppose the Fed lowers interest rates next week because of “subdued inflationary pressures” (“officially” at least) and because of “declining credit availability to support future productivity growth” (read: subprime fallout).

As a consequence the dollar would surely sink. All because of subprime and unpatriottic media such as housingdoom.com and Jim Cramer!

]]> By: Tobby http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6519 Tobby Wed, 01 Aug 2007 15:42:59 +0000 http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6519 Many a prudent bear have been railing against the low risk premiums across ALL classes of debt securities on a global basis. Subprime mortgages are just the first to default and are currenlty causing the biggest ripples. There are quite a few public companies that are heavily leveraged with debt and are currently able to service that debt because of a relatively strong global economy. The real test will come when there is an economic slowdown. Many a prudent bear have been railing against the low risk premiums across ALL classes of debt securities on a global basis. Subprime mortgages are just the first to default and are currenlty causing the biggest ripples. There are quite a few public companies that are heavily leveraged with debt and are currently able to service that debt because of a relatively strong global economy. The real test will come when there is an economic slowdown.

]]> By: John M. http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6518 John M. Wed, 01 Aug 2007 14:27:51 +0000 http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6518 Jan-Martin - Looks like "The Wall of ... What, me Worry?" is intact, at least for now. Dow up almost 60 points this morning. Jan-Martin -

Looks like “The Wall of … What, me Worry?” is intact, at least for now. Dow up almost 60 points this morning.

]]> By: jan-martin feddersen http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6517 jan-martin feddersen Wed, 01 Aug 2007 13:56:56 +0000 http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6517 Moin John, wonderful piece. What happened to the argument stocks need to climb "the wall of worry" that we have heard for almost 5 years from the bulls...... :-) Moin John,

wonderful piece.

What happened to the argument stocks need to climb

“the wall of worry”

that we have heard for almost 5 years from the bulls…… :-)

]]> By: John M. http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6516 John M. Wed, 01 Aug 2007 13:03:29 +0000 http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6516 <a href="http://www.afp.com/english/home/" rel="nofollow">Agence France-Presse</a> seems to think that subprime ate the carry trade and had the M&A bubble for desert. Looks like today's results could provide a real purge and get everyone (especially the hedgies) focused firmly on reality. <a href="http://www.france24.com/france24Public/en/administration/afp-news.html?id=070801113441.t56od76q&cat=null" rel="nofollow">"World stocks in meltdown over US economy fears"</a>, Ben Perry, <em>AFP / France24</em>, August 1, 2007.<blockquote>European and Asian stock markets plummeted Wednesday, mirroring heavy losses the previous day in New York, on mounting fears that weakness in the US housing sector could infect the world economy.<br> <br> In London, Frankfurt and Paris the main share indices were down almost 2.0 percent nearing the half-way stage.<br> <br> The yen meanwhile hit a four-month high against the dollar and oil traded close to an all-time peak in New York as investors exited risky investments and turned to safe-havens, dealers said.<br> ...<br> <br> Economists said there were growing jitters about the potential fallout from problems in US subprime lending sector, where mortgages are provided to people with questionable credit histories.<br> ...<br> <br> "The central issue that concerns the equity market is really the extent to which this whole subprime fallout will affect a general credit squeeze and reverse the expansion we have seen in the global economy," said Mike Lenhoff, chief strategist at Brewin Dolphin Securities in London.<br> <br> "There is this worry now that the ease with which lending has taken place and the ease with which there has been access to borrowing to finance the global economy is being unwound."<br> <br> No market was immune to plunging equities on Wednesday, as Hong Kong's key Hang Seng Index closed down 3.15 percent, China share prices shed 3.81 percent and Indian's main equity market plunged 3.96 percent.</blockquote> Agence France-Presse seems to think that subprime ate the carry trade and had the M&A bubble for desert. Looks like today’s results could provide a real purge and get everyone (especially the hedgies) focused firmly on reality.

“World stocks in meltdown over US economy fears”, Ben Perry, AFP / France24, August 1, 2007.

European and Asian stock markets plummeted Wednesday, mirroring heavy losses the previous day in New York, on mounting fears that weakness in the US housing sector could infect the world economy.

In London, Frankfurt and Paris the main share indices were down almost 2.0 percent nearing the half-way stage.

The yen meanwhile hit a four-month high against the dollar and oil traded close to an all-time peak in New York as investors exited risky investments and turned to safe-havens, dealers said.
…

Economists said there were growing jitters about the potential fallout from problems in US subprime lending sector, where mortgages are provided to people with questionable credit histories.
…

“The central issue that concerns the equity market is really the extent to which this whole subprime fallout will affect a general credit squeeze and reverse the expansion we have seen in the global economy,” said Mike Lenhoff, chief strategist at Brewin Dolphin Securities in London.

“There is this worry now that the ease with which lending has taken place and the ease with which there has been access to borrowing to finance the global economy is being unwound.”

No market was immune to plunging equities on Wednesday, as Hong Kong’s key Hang Seng Index closed down 3.15 percent, China share prices shed 3.81 percent and Indian’s main equity market plunged 3.96 percent.

]]> By: metroplexual http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6515 metroplexual Wed, 01 Aug 2007 12:18:02 +0000 http://housingdoom.com/2007/08/01/subprime-ate-my-homework/#comment-6515 Here is my 2 cents. http://www.nytimes.com/2007/08/01/business/01leonhardt.html?ref=business Resets still have a long way to go. Here is my 2 cents.

http://www.nytimes.com/2007/08/01/business/01leonhardt.html?ref=business

Resets still have a long way to go.

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