Comments on: Explanation of why banks have gone under or merged http://thefrontsteps.com/2008/10/02/explanation-of-why-banks-have-gone-under-or-merged/ Real Estate, Insight, Statistics, Gossip, & News...With a Twist and Some Flavor Thu, 09 Feb 2012 07:18:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Ken Fischer http://thefrontsteps.com/2008/10/02/explanation-of-why-banks-have-gone-under-or-merged/comment-page-1/#comment-6763 Ken Fischer Tue, 18 Nov 2008 15:25:13 +0000 http://thefrontsteps.com/?p=2387#comment-6763 This is exactly what happened. Yes it all starts with over priced real estate. But the nuts and bolts answer to what froze up the lending markets is 100% spot on! This is exactly what happened. Yes it all starts with over priced real estate. But the nuts and bolts answer to what froze up the lending markets is 100% spot on!

]]> By: The banker http://thefrontsteps.com/2008/10/02/explanation-of-why-banks-have-gone-under-or-merged/comment-page-1/#comment-5710 The banker Thu, 02 Oct 2008 23:48:16 +0000 http://thefrontsteps.com/?p=2387#comment-5710 This by Marc Herrenbruck (No way I could come up with this!): By the way. . .neither could Marc! This by Marc Herrenbruck (No way I could come up with this!):

By the way. . .neither could Marc!

]]> By: The banker http://thefrontsteps.com/2008/10/02/explanation-of-why-banks-have-gone-under-or-merged/comment-page-1/#comment-5709 The banker Thu, 02 Oct 2008 23:46:56 +0000 http://thefrontsteps.com/?p=2387#comment-5709 I suppose I am the only one concerned that a mortgage broker is and using someome else's opinion/published writings? This is a sales manager and 20 year veteran of the busines. . .don't even get me started on the affect that mortgage brokers have had on the market. I suppose I am the only one concerned that a mortgage broker is and using someome else’s opinion/published writings?
This is a sales manager and 20 year veteran of the busines. . .don’t even get me started on the affect that mortgage brokers have had on the market.

]]> By: eddy http://thefrontsteps.com/2008/10/02/explanation-of-why-banks-have-gone-under-or-merged/comment-page-1/#comment-5705 eddy Thu, 02 Oct 2008 19:27:04 +0000 http://thefrontsteps.com/?p=2387#comment-5705 Here is a quote from buffet: "Biggest single cause: tremendous residential real-estate bubble. Human behavior leads to bubbles. Everyone believed prices were going to go up forever. Behaved foolishly. We leveraged up: 20% fall in value of $20 trillion asset. That's $4 trillion. That's a big deal. And it continues." $700B is a fraction of this problem and may or may not be the solution. Here is a quote from buffet:

“Biggest single cause: tremendous residential real-estate bubble. Human behavior leads to bubbles. Everyone believed prices were going to go up forever. Behaved foolishly. We leveraged up: 20% fall in value of $20 trillion asset. That’s $4 trillion. That’s a big deal. And it continues.”

$700B is a fraction of this problem and may or may not be the solution.

]]> By: eddy http://thefrontsteps.com/2008/10/02/explanation-of-why-banks-have-gone-under-or-merged/comment-page-1/#comment-5704 eddy Thu, 02 Oct 2008 19:02:57 +0000 http://thefrontsteps.com/?p=2387#comment-5704 Why was this article posted? It honestly should be entirely stricken from the record for its blatant mis-representation or what is happening broadly. And to make predictions about the success of this plan -- when even the creators of this plan are on record stating that this may not solve the issue -- is preposterous. I much prefer to digest my economic facts from those with specialty in the area, or from some of the people that actually predicted the situation (Roubini, Blodget, etc.) -- rather than a California Mortgage Specialist. I'd like to vote to have this article removed as its content does not match the otherwise superb writing / commentary on tFS. Eddy PS: leave it - I really don't care but AM putting my opinion on record. :) Why was this article posted? It honestly should be entirely stricken from the record for its blatant mis-representation or what is happening broadly. And to make predictions about the success of this plan — when even the creators of this plan are on record stating that this may not solve the issue — is preposterous.

I much prefer to digest my economic facts from those with specialty in the area, or from some of the people that actually predicted the situation (Roubini, Blodget, etc.) — rather than a California Mortgage Specialist.

I’d like to vote to have this article removed as its content does not match the otherwise superb writing / commentary on tFS.

Eddy
PS: leave it – I really don’t care but AM putting my opinion on record. :)

]]> By: ollie12 http://thefrontsteps.com/2008/10/02/explanation-of-why-banks-have-gone-under-or-merged/comment-page-1/#comment-5703 ollie12 Thu, 02 Oct 2008 17:54:08 +0000 http://thefrontsteps.com/?p=2387#comment-5703 I'd take Mr. Habib's insight with a grain of salt. Here's a quote from him regarding the housing bubble. Mortgage Market Forecast 2006 by Barry Habib 4/20/2006 Excerpt from the interview: "We will enter the fifth year of the anticipated housing bubble. Yes, for the past four years the media has beat the drum on a looming housing bubble. But all the media bubble hype has only served to hurt those buyers who were scared off from purchasing a home earlier and now see how much more those homes cost. So is there a bubble? The simple answer is no. But some areas may cool a bit after a torrid run up, especially in the top tier of their price category." Hopefully people won't actually buy his 'analysis' of our current problems as being accurate. He's first and foremost a salesman schilling for his industry's livelihood. I’d take Mr. Habib’s insight with a grain of salt. Here’s a quote from him regarding the housing bubble.

Mortgage Market Forecast 2006 by Barry Habib
4/20/2006
Excerpt from the interview:

“We will enter the fifth year of the anticipated housing bubble. Yes, for the past four years the media has beat the drum on a looming housing bubble. But all the media bubble hype has only served to hurt those buyers who were scared off from purchasing a home earlier and now see how much more those homes cost.

So is there a bubble? The simple answer is no. But some areas may cool a bit after a torrid run up, especially in the top tier of their price category.”

Hopefully people won’t actually buy his ‘analysis’ of our current problems as being accurate. He’s first and foremost a salesman schilling for his industry’s livelihood.

]]> By: anon http://thefrontsteps.com/2008/10/02/explanation-of-why-banks-have-gone-under-or-merged/comment-page-1/#comment-5702 anon Thu, 02 Oct 2008 17:07:44 +0000 http://thefrontsteps.com/?p=2387#comment-5702 Whether or not one agrees with the viewpoint, this should be properly attributed to the author - Barry Habib - of The Mortgage Market Guide, a well-respected expert on the mortgage markets and frequent contributor to MSNBC, FOX News and CNBC. [<strong>Editor's note</strong>: Agreed. Thanks for pointing this out.] Whether or not one agrees with the viewpoint, this should be properly attributed to the author – Barry Habib – of The Mortgage Market Guide, a well-respected expert on the mortgage markets and frequent contributor to MSNBC, FOX News and CNBC.

[Editor's note: Agreed. Thanks for pointing this out.]

]]> By: Sparky http://thefrontsteps.com/2008/10/02/explanation-of-why-banks-have-gone-under-or-merged/comment-page-1/#comment-5700 Sparky Thu, 02 Oct 2008 15:26:24 +0000 http://thefrontsteps.com/?p=2387#comment-5700 agreed anon, This guy has no idea what he it talking about. You can't break this down to the description he puts out there, one duress sale and now we all have to mark for less. It would be more like you bought in a development, no one else did, no one wants the to pay the price you did, the houses all sit empty. What is you house worth? agreed anon,

This guy has no idea what he it talking about. You can’t break this down to the description he puts out there, one duress sale and now we all have to mark for less. It would be more like you bought in a development, no one else did, no one wants the to pay the price you did, the houses all sit empty. What is you house worth?

]]> By: anon http://thefrontsteps.com/2008/10/02/explanation-of-why-banks-have-gone-under-or-merged/comment-page-1/#comment-5699 anon Thu, 02 Oct 2008 15:03:11 +0000 http://thefrontsteps.com/?p=2387#comment-5699 Wow, this guy has no idea what he is talking about. The root of the problem is that asset values, including housing, are in a steep decline, and the problem is exacerbated not because institutions are properly reflecting that fact under FASB 157 (which is designed to prevent game-playing with balance sheets) but because they are NOT properly accounting for their assets under the rule. Confidence is undermined throughout the markets and nobody wants to lend to one another since we have no idea who is a good risk and who is not. This whole thing has nothing at all to do with "duress" in the sense this guy uses the term. Wow, this guy has no idea what he is talking about. The root of the problem is that asset values, including housing, are in a steep decline, and the problem is exacerbated not because institutions are properly reflecting that fact under FASB 157 (which is designed to prevent game-playing with balance sheets) but because they are NOT properly accounting for their assets under the rule. Confidence is undermined throughout the markets and nobody wants to lend to one another since we have no idea who is a good risk and who is not. This whole thing has nothing at all to do with “duress” in the sense this guy uses the term.

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