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Mortgage defaults growing, AIG says
http://money.cnn.com/2007/08/09/news/economy/bc.aig.subprime.reut/index.htm?postversion=2007080908 ^ | 8-9-07

Posted on 08/09/2007 6:33:05 AM PDT by Hydroshock

NEW YORK (Reuters) -- Residential mortgage delinquencies and defaults are becoming more common among borrowers in the category just above subprime, American International Group said Thursday.

AIG (Charts, Fortune 500), the world's largest insurer and one of the biggest mortgage lenders, said total delinquencies in its $25.9 billion mortgage insurance portfolio were 2.5 percent.

It said 10.8 percent of subprime mortgages were 60 days overdue, compared with 4.6 percent in the category with credit scores just above subprime, indicating that the threat to the mortgage market may be spreading.

While maintaining that it is "comfortable" with its mortgage exposure, AIG gave a gloomy assessment of the market in a presentation to investors and analysts.

(Excerpt) Read more at money.cnn.com ...


TOPICS:
KEYWORDS: depression; despair; dustbowl; gloomanddoomer; grapesofwrath; hooverville; skyisfalling; woeisus
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To: Moonman62

“I think it’s like some Christians who get off by condemning others to hell.”
How many time have you heard a Christian condemn a person to hell? Of course it’s an impossibility for a person to do so but I am curious to know where you heard such a condemnation take place.


21 posted on 08/09/2007 6:50:11 AM PDT by em2vn
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To: RockinRight

Maybe slightly higher than normal, but it’s nothing like a “meltdown”.


22 posted on 08/09/2007 6:50:30 AM PDT by cinives (On some planets what I do is considered normal.)
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To: Moonman62

Well said.


23 posted on 08/09/2007 6:51:20 AM PDT by Red in Blue PA (Truth : Liberals :: Kryptonite : Superman)
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To: Moonman62

No, I am in favor of raising rates to stop inflation. But be that as it may the liquidity is gone adn will nto be coming back in the near future.


24 posted on 08/09/2007 6:52:54 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: cinives

This isn’t political. This is dangerous, dangerous economic stuff.


25 posted on 08/09/2007 6:53:29 AM PDT by durasell (!)
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To: Red in Blue PA

Do you think the markets are immune to emotion ? Shoot, the markets ping around on rumor and speculation, as much as fact.

There’s a bridge in Brooklyn that hasn’t collapsed yet that’s for sale ...


26 posted on 08/09/2007 6:53:32 AM PDT by cinives (On some planets what I do is considered normal.)
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To: cinives

The stock market opened lower this morning on something that happened in France earlier today...


27 posted on 08/09/2007 6:54:42 AM PDT by tubebender (My first great grandson is a Miniature Schnauzer...)
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To: Hydroshock

Hey why all this focus on bad loans for mortgages. Everyone ignores the atrocious student loan situation. Colleges in bed with the banks and the Gov’t dupe kids and parents into floating monstrous loans (while tuitions continue to rise). When students get out of school owing 20, 30, 40 thousand dollars many of these loans can’t be repaid and are defaulted on as well. And the Democrats want to increase money to the program? Does anyone dare to say enough? Because education is good. Repeat the words, education is good, good, good...


28 posted on 08/09/2007 6:55:27 AM PDT by rhombus
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To: cinives
On Cavuto yesterday Bush said he’d veto any bailout.

I guess older brother Neil Bush is not involved this time. The American taxpayer bailed out Neil Bush and Silverado to the tune of about $150 billion. The little guy got burned big time by Neil.

29 posted on 08/09/2007 6:56:16 AM PDT by texastoo ((((((USA)))))((((((, USA))))))((((((. USA))))))))
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To: cinives

Re: Do you think the markets are immune to emotion ?

I am wholly cognizant of that, thank you.

Re: There’s a bridge in Brooklyn that hasn’t collapsed yet that’s for sale

So all of the suprime worries are just that, worries?

They have absolutely nothing to do with the recent collpase of at least 2 Goldman Sachs hedge funds[roll eyes]


30 posted on 08/09/2007 6:56:38 AM PDT by Red in Blue PA (Truth : Liberals :: Kryptonite : Superman)
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To: rhombus

Agreed, My wife and I have paid over $20k already on her loans, adn still have more ot go.


31 posted on 08/09/2007 6:58:17 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Red in Blue PA

By the time an economic crisis becomes “real” for many people, it’s already too late. It’s one of those deals where “economics” is far, far away and doesn’t have anything to do with them until they’ll paying $4.00 for a can of soup.


32 posted on 08/09/2007 6:58:59 AM PDT by durasell (!)
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To: durasell

Why ? Less than 4% of mortgages are delinquent or in default - meaning 96% of Americans are (so far) secure in their mortgages.

Who will get hurt ? The intemperate fools who bought and lent to those buyers houses they could not afford. Hedge fund investors and their managers who invested in subprime debt. Corporate buyouts based on unrealistic multiples of earnings.

Need I go on ? The stock market will not tank beyond a basic correction, because so far, corporate earnings are decent.

I don’t see another major recession coming long in the wake of this.

I still think ongoing excess money supply is our bigger long range problem, and the slowing of the debt creation process thru fewer loans will be a help.

Shaking stupidity out of the markets is a good thing.


33 posted on 08/09/2007 7:00:12 AM PDT by cinives (On some planets what I do is considered normal.)
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To: Hydroshock; backhoe
Related link. And a ping for backhoe. That Oil For Food loot didn't last long.

BNP Paribas Freezes Funds as Loan Losses Roil Markets (Update3)

34 posted on 08/09/2007 7:00:45 AM PDT by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: cinives

Record M&A activity was happening before all of this hit the fan. Now it looks like we will see decreased M&A, along with tougher loans for those who truly are growing their businesses.

There is more here than just a headline.


35 posted on 08/09/2007 7:02:41 AM PDT by Red in Blue PA (Truth : Liberals :: Kryptonite : Superman)
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To: Moonman62
You're right, but apparently some people feel morally superior by declaring they have no sympathy for others.

The constant gloating over people losing their homes—whether or not they should have been more wise about personal finance—is a bit difficult to stomach.

36 posted on 08/09/2007 7:03:20 AM PDT by Junior_G
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To: mewzilla
And from 2005....

Banking on illegal immigrants Banks are seeing an untapped resource in providing home loans to undocumented U.S. residents

Three guesses why the hue and cry for a bailout....

37 posted on 08/09/2007 7:03:31 AM PDT by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: durasell

Exactly.

Economics is NOT brain surgery, but there is more there than meets the eye.


38 posted on 08/09/2007 7:03:34 AM PDT by Red in Blue PA (Truth : Liberals :: Kryptonite : Superman)
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To: Moonman62

“You’re right, but apparently some people feel morally superior by declaring they have no sympathy for others.”

What are we supposed to do? Say how much we care? We really, really care about these stupid people that are unable to read teh contract and take care of themselves. You sound like a “compassionate conservative”. We care more than the liberals.


39 posted on 08/09/2007 7:04:50 AM PDT by caver (Yes, I did crawl out of a hole in the ground.)
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To: cinives

That 4% doesn’t exist in a vacuum. Those hedge funds don’t exist in a vacuum. Plus, we’re only seeing the first wave of this thing now.


40 posted on 08/09/2007 7:05:17 AM PDT by durasell (!)
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