Posts Tagged ‘Economic Impact’

A contentious point and one I found alarming is a result of company reduction, off shoring services, and the flight of manufacturing from the United States. We are told new jobs are being “created”, but at what expense? It became more difficult to find new employment and most new jobs were lower paying and lacked benefits. Many people have little or no reserves, so the loss of a job or an extended illness often results in missed mortgage payments and, eventually, default.

  • Merrill Lynch posted a nearly $10 billion fourth-quarter loss and wrote down $14.6 billion in soured mortgage debt and other loans. The New York-based brokerage posted a net loss of $9.8 billion
  • Bank of New York Mellon Corp. said Thursday its fourth-quarter profit dropped 68% from a year earlier as the company took charges on collateralized debt obligations and a conduit it sponsors
  • Citigroup saw an $18.1bn write-down of mortgage investments (announced yesterday)
  • HSBC has not reported but the report will not be pretty
  • Something is bothering the market today, with the Dow down 210.70 at mid-day. Fourth quarter results will be out soon and some are holding their breath. For instance, a report in the New York Times says Merrill Lynch could write down as much as $15 billion in the fourth quarter. Analyst estimates to this point have been around $12 billion. What ever the number is it comes on top of $8.4 billion in the third quarter, and the departure of former Chief Executive Officer Stan O’Neal.

    Problems with the economy continue but the way in which reports are worded continue to amaze the staff at Mortgage Blues. Just four days ago one news report said the holiday season was great. Then it turned out that everything was counted, including fuel, which has never been counted. While we interview people on the street and take polls to determine the real truth others pump out rhetoric that makes no sense to anyone. Finally, on Thursday, January 10th, we saw a real report:

    Today seems like the day to write articles about Countrywide Home Mortgage, but Countrywide seems to be adding to their own problems. Countrywide Financial Corp. dropped the most in two decades in New York trading on speculation that it needs cash to continue operating its mortgage business. There have been rumors about Countrywide and bankruptcy. As ironic as it seems there were actually two reports about Countrywide and bankruptcy.

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