[TigerLikesRooster]

We are living in interesting times.

[TigerLikesRooster]

Ping!

[BurbankKarl]

Funny how the flipper Freepers have disappeared.

[The_Republican]

You mean interest-ing times.

[Eric Blair 2084]

I still maintain that loaning money to homeless people to buy a house is a good business model. I don’t care what anyone else says.

[Content Provider]

I wonder just how much of the world’s apparent wealth lies in these multiple-leveraged phantoms. I have had many discussions on the topic over the past year with a friend who argued that “on-paper” dollars were just as valid as cash-in-hand dollars.

So much money can simply disappear only if it never really existed in the first place.

[dennisw]

Thornburg, which specialises in mortgages of more than $417,000, also holds bonds backed by home loans on its balance sheet as investments. The value of both the mortgages and the bonds have plummeted in recent weeks as investors shy away from most forms of debt.

Their mistake was not foisting their "bonds backed by home loans" (CMOs) onto other parties. Then they would be home free. These CMO are commonly referred to as "toxic waste" these day and Thornburg is a Superfund site

[razorback-bert]

Peloton Partners ... was forced by its bankers, led by Goldman Sachs and UBS, to sell assets at a 30 per cent discount to meet their cash calls.

I suspect discounts of these funny money bonds are going to go deeper than 30% before this is over.

Let me note, I am shocked at a 30% discount.

Be interesting to know who was the buyer or buyers.

[BJungNan]

People are losing their homes on these darn adjustable rate mortgages they signed up. Payments are going through the roof at the same time they are finding their income shrinking.

Of course it was there fault for signing up for such stupid loans but what about the total lack of responsiblity on the part of the banks that made the loans.

It is not just a recession coming. We will be lucky if it only ends up as a deep recession. It is not just interesting times, it is troubled times.

[bruinbirdman]

"JPMorgan, which has loaned Thornburg $320 million, said that it planned to force the mortgage group to liquidate some of its assets."

JPM will be happy to buy Thornburg's $3.2 billion of forced liquidated assets for, say, $320 million. Heck it might just offer to buy the whole company.

yitbos

[Proud_USA_Republican]

http://globaleconomicanalysis.blogspot.com/2008/02/evidence-of-walking-away-in-wamu.html

[tracer]

“Sic semper suis”.....

[Etoo]

[JPMorgan, which has loaned Thornburg $320 million, said that it planned to force the mortgage group to liquidate some of its assets. The move is expected to trigger similar action from other creditors, which could push Thornburg into bankruptcy.]

 

=========================================================

Page 73
The discovery by financial capitalists that they made money out of issuing and selling securities rather than out of production, distribution and consumption of goods accordingly led them to the point where they discovered that the exploiting of an operating company by excessive issuance of securities or the issuance of bonds rather than equity securities not only was profitable to them but made it possible for them to increase their profits by bankruptcy of the firm, providing fees and commission of reorganization as well as the opportunity to issue new securities.

Tragedy and Hope: A History of the World in Our Time', by Carroll Quigley; =========================================================

 

Deja vu!

 

 

[iowamark]

a key creditor demanded that it liquidate assets

You mean it might have to resell some houses at a more reasonable price?!

[Just mythoughts]

Well who knew, after Enron/accounting crimes and political campaign finance reform seemed like liberals cleaned up all dirty money and mean evil profiteers... So now it is on to housing and oil... who is next? Government housing and government oil, wow just wow.

[Travis McGee]

“Cross-default provisions will likely lead other lenders to follow suit in laying claim to assets, leaving little value remaining. With limited options, we now think a bankruptcy filing is a more likely outcome.” Thornburg is the latest in a fast-growing list of borrowers that face being forced to liquidate assets by their creditors because they cannot meet the calls for additional collateral.

That is a term we shall become familiar with in the coming months.

[redgolum]

Phase bank failures.

You know, I read a book not long ago called “The Creature from Jekyll Island”. Giving to me by a friend who figured I would get a kick out of it.

What brings it to mind is that the last chapter in the book talks of just what is going on now.