Panic of 2008: Is Lehman Brothers Next?

Underground Politics ^

[Jay Redhawk]

Glad to hear it. I am in western Oklahoma’s wide open spaces. Rain today has delayed my potato planting, but I will get it finished sometime this week. I think we can make through any economic dowturn as long as we are vigilant and keep a sense of humor.

[MarkT]

Good question but very difficult to answer accurately. In the 'old' days (think 80s and 90s), if you used FNMA/FHLMAC data, you could reasonably do WACs and WAMs based on a wealth of historical data. I am afraid this product does not have enough history to make statistically significant conclusions.

This is just another 'perfect storm' of greedy elements - (in no particular order) mortgage bankers, appraisers, investment bankers and as usual the most egregious of all - the political whores (including Greenspan) who pursued a policy that every brokedick person in the country had a right to own a home, even if he could not afford it.

[investigateworld]

I can see the problem, with the 'income approach' to appraising these loans. With many of the teasers going to reset, there is no data how the homeowner will react or even stay with the property.

Lordy, where were the adults?

[central_va]

+64

[HamiltonJay]

Cap Rates will keep the buyers away, and the price will go down... And frankly it needs to. The notion that you park your money in real estate and appreciation will make you rich in a few years was nonsense in both retail and commercial real estate... That party is done.

Real Estate holding when this collapse is finally done, and its going to take a long while, will once again be an inflation hedge, not a 2 year paper wealth attempt.

[Hot Tabasco]

+64

Squeek my cat told me to say thank you..........she will sleep well tonight.

[GOPJ]

Stop for a second and think about that. To save the economy, we have to revalue financial assets at 1 / 100th of their previous value.

Yeah, and - stop for a second and think about it - the revalue and were happy to get out.

[underground]

Dang, I missed the low by 40 and you missed the high by 15 minutes of trading. I don’t think we’re ready to start a brokerage yet, but if we screw up won’t the Fed just come save us too?

[Lazamataz]

We’re all gonna die!!!!

[underground]

You’re pretty bullish on an economy hooked up to government life support. We’re sleepwalking through another New Deal, but hey, the Fed will save us all!

[Lazamataz]

I'm not pretty bullish.

I'm pretty bulls**t.