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Where are Mortgage Rates Headed?
Spreads showing tightening, but government keeps throwing curve balls on their own objectives. My shot at a mortgage rate forecast.
Appropriate Mortgage Meltdown Swag
Get your “We’re the Government and We’re Here to Help” mortgage meltdown swag.
Major Banks Post Record Losses, Some Getting Investment
Wachovia tips the scales with a staggering $23.7 billion quarterly loss! But, that is not the most incredible part. This latest loss makes it like Wachovia never even existed:
“On top of $10 billion in losses earlier this year, the quarter wipes out nearly all the profit Wachovia has earned since 2001, when it merged with First Union and became a much bigger, national bank.”
followed by the CFO understatement of the year:
“Wachovia Chief Financial Officer David Zwiener called the events of the past three months ‘unprecedented, almost unimaginable.’”
Meanwhile, quite super-regional SunTrust dumps 26%.
However, some see banks as a good investment:
An investment fund is sinking $15 million into and taking control of Irvine-based Plaza Bank, which was founded in December 2005 and has yet to turn a profit.
Although a relatively small deal, it caught my attention since there is a national credit meltdown underway.
Carpenter Community BancFund said last week that the deal hinges on regulatory approval, on implementation of certain growth strategies, and on replacing the bank’s chief executive and president. Industry consultant Edward Carpenter is running the Irvine-based fund.
Foreclosures Jump 71% for the Quarter
Foreclosures up 71% in the third quarter translating to 81,312 homeowners lossing their homes. Meanwhile, the US government is trying to sort out a foreclosure plan White House and Treasury support buying, FDIC says restructure via loan modifications.
My New Favorite Market Pundit
Edgy, brash, foul mouthed, hedge fund manager–all redeemed with frequently being right.
There are many things that are starting to make sense in the chaos:
1. Mahalo is dead and CalacANUS exposed as a punk.
2. TechCrunch is finished. It does not matter that Arrington is rich or may survive, but his brand is kaput. If you think he is not, you are running a bad web business so who cares what you think.
3. Ebay, RIMM, Microsoft, AOL and Yahoo have lost. They will survive and even thrive, but they are longshots and that makes them dumb investments. Google, Apple and Amazon have won the first 10 years of the internet.
4. Commodities are just that…Commodities. The biggest made up numbers of all time may just be the growth numbers manufactured out of China the last 10 years. Take a look at the semiconductor index. That’s your likely scenario for years to come.
So…..quit dwelling on the past I just summed it up for you.
More important is what lies ahead.
Read him you will be smarter for it.
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