InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Code References 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 70+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map About Us Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Banks are not banks anymore Posted by Bob Smith on September 25, 2006 at 9:17 AM In Reply to: Banks are not banks anymore posted by Rick, the Probate Guy on September 24, 2006 at 8:26 AM : So, what do you think is going to happen this round? I think there's a good chance FNMA will collapse. OFHEO refuses to rein them in (FNMA donates a lot of money to its Democrat patrons), and the SEC is looking at indictments against its executives for misstating earnings in order to maximize profit-sharing payouts. They've already "restated" about $16 billion worth of losses, and future losses (IMO) are sure to come. A collapse, or even a significant downgrade in FNMA's bond rating, will cause panic in the bond markets. FNMA has issued or guaranteed well over $1 trillion in debt, and more than a trillion in variable-rate debt is due to ratchet up in the next year or so. I think all this, or the threat of this, will severely constrict the lending markets, further accelerating a deflating real estate marketplace and upping the pain level of homeowners suffering under ARMs (falling value + tight refi market == real bad news). Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : So, what do you think is going to happen this round? : I think there's a good chance FNMA will collapse. OFHEO refuses to rein them in (FNMA donates a lot of money to its Democrat patrons), and the SEC is looking at indictments against its executives for misstating earnings in order to maximize profit-sharing payouts. They've already "restated" about $16 billion worth of losses, and future losses (IMO) are sure to come. A collapse, or even a significant downgrade in FNMA's bond rating, will cause panic in the bond markets. FNMA has issued or guaranteed well over $1 trillion in debt, and more than a trillion in variable-rate debt is due to ratchet up in the next year or so. I think all this, or the threat of this, will severely constrict the lending markets, further accelerating a deflating real estate marketplace and upping the pain level of homeowners suffering under ARMs (falling value + tight refi market == real bad news). Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2006, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455