Re: [RT] wachovia May Face New Mortgage Writedowns - Financials * US * News

["Ira" <mr.ira@xxxxxxxxxxxxx>]

There are several of us that have warned about what is about to happen.  Those of us that have posted this warning lived during those times.  I have posted many times about inflation, interest rates and the falling dollar.  It is always the young Turks that feel they have the answer to everything.  I remember the foreign loan fiasco when all the large banks tried to out do each other and got stuck with a lot of bad loans where the foreign governments just said that they weren't going to pay any time soon.  So the banks rolled the principle and accumulated interest into a bigger loan that wasn't going to get paid and it worked magic on their books.  At the time if those banks had to submit a financial statement for a car loan they would have been refused.  Now we have the mortgage scandal.  They did learn from the 60s on this one.  They packaged all the bad loans instead of keeping them and got them on someone else's books as mortgage backed securities.  Some of these bad loans have insurance and some insurance companies are going to be in trouble.  If not now, soon.   This is like a giant sink hole and it will suck a lot of people and companies down into it.  The fall from 2000 to 2003 could just be a walk in the park before this one is over. 

 

 

Just one man's opinion,  Ira
www.delta100.com

 

 

----- Original Message -----

From: Timothy Morge

To: realtraders@xxxxxxxxxxxxxxx

Sent: Wednesday, January 02, 2008 9:00 PM

Subject: Re: [RT] wachovia May Face New Mortgage Writedowns - Financials * US * News

Ben:

I have been speaking about this happening for the past
18 months at seminars and Traders Expos. Most people
trading today were not around to see the oil embargo
in the 1970's and then the near hyper inflation that
Volker then wrung out of the economy.

Greenspan printed money like there was no tomorrow
after 9/11 for over 3 years. M3 has been growing at
around 17 percent. This will all come due and we are
only now seeing the beginning of the current Fed
chairman dealing with this situation. Those he has
been lowering 'official' rates, he has NOT been
handing out free money at the window to institutions
with troubled portfolios--and I doubt he will, being a
staunch monetarist. I think he will say, as Volker
did: You enjoyed the good times, now the situation
must be remedied--the price will be paid.

Who in their right mind lent people 125 pct value of
their homes in interest only loans? And then...the
incredible part is that some of the largest
institutions BOUGHT those rediculous loans as bundle
investments. What a crazy mixed up world. Hot potatoe!
Those that hold this awful paper last...lose.

I wish you all a healthy and happy 2008.

Best,

Tim Morge

www.medianline.com
--- Ben <profitok@xxxxxxxxxxnet> wrote:

>
> Sent: Wednesday, January 02, 2008 3:03 AM
> Subject: [TimeandCycles] Wachovia May Face New
> Mortgage Writedowns - Financials * US * News
>
>
>
> Wachovia May Face New Mortgage Writedowns -
> Financials * US * News * Story - CNBC.com
>
> I've been in the industry for 32 years, and I've
> been CEO for seven years, and this is as tough an
> environment as I've seen," Wachovia Chief Executive
> Ken Thompson said at a Dec. 12 Goldman Sachs
> financial services conference
>
> this is pattern, they will have new writedowns every
> month for the rest of the year
>
>
>
>
>
>
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> Release Date: 1/2/2008 11:29 AM
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