Hehehehehe.... Oh, and there's more than $200 billion in additional debt that has to go out here in the next couple of months or there will be LBO deals that go "boom!"
"Goldman Sachs Group Inc., JPMorgan Chase & Co. and the rest of Wall Street are stuck with at least $11 billion of loans and bonds they can't readily sell.
The banks have had to dig into their own pockets to finance parts of at least five leveraged buyouts over the past month because of the worst bear market in high-yield debt in more than two years, data compiled by Bloomberg show. "
"By its own measures, everything looks good at ACA Capital Holdings, a financial management and insurance company. But other numbers do not look so good, and the stock price is falling rapidly. The company will not comment on what is going on.Psst - its the credit markets stupid! Gee, isn't that important to all equities? Hmmmmm...
In New York Stock Exchange trading yesterday, ACA shares fell 22 percent, dropping $1.87, to $6.59, on the heaviest volume in the company’s brief history. The shares have lost a third of their value since Thursday, and are trading at less than half of their value a month ago."
"The bottom line is that the single-family housing market is still in a correction process following the historic and unsustainable highs of the 2003-2005 period," NAHB Chief Economist David Seiders said in the statement."On the mortgage lending front, Minnesota apparently has had enough of liars loans, negative amortization "exploding debt bomb" mortgages and more. From the forum (unverified so far):
"Effective on August 1 ,2007 the State of Minnesota will implement the following change: ONLY Full doc loans will be allowed – all loans must have verified incomeNo more games in Minnesota! This is likely to continue in other states, which will hasten the much-needed correction in house prices. No more will the unaffordable "debt bomb" mortgages be issued, and more importantly, neither will the "serial refinance trap game" be permitted by the states.
and assets. This applies to all loan types (Conventional, Alt A, Jumbo, HELOAN)
Option ARM’s will not be allowed – no loan resulting in potential negative amortization."
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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