Posts Tagged ‘Investors’

Indy Mac Sings the Mortgage Blues as speculators walk

Written by Timothy Blake on November 06, 2007 under Archives, Investors, Lenders

Does this sound like it would be a problem? IndyMac, a Top 10 mortgage lender nationally, had been No. 1 in loans to so-called Alt-A borrowers, typically small business owners with good credit scores who wrote off their expenses so aggressively that their tax returns showed little income. The lender made mortgages to those customers without documenting their earnings. What happens when the tax man and the bill collectors come?

Our children pay the high price of financial folly

Written by Timothy Blake on November 06, 2007 under Archives, Economic Impact, Editorial, Government Positions, Investors, Job Losses, Lenders, Mortgage Insurance, Opinion, Root Causes

President Clinton repealed the Glass-Steagall Act which had prevented the coupling of investment banking and lending. Following President Clinton, George W. Bush proved to be very pro-business, but at a high cost to the average consumer. Intelligent Americans realized consumer spending and risky lending practices would come with a very high price. The full impact was not felt by baby-boomers and those age 50 and over. Our children will pay the high price of folly for a long time.

Investors dump bank shares, credit card crisis to follow

Written by Timothy Blake on November 05, 2007 under Archives, Economic Impact, International, Investors

The Dow continued to decline at Monday’s opening (November 5, 2007) and the trend in London is to get rid of investments in banks. It is 9 AM in the U.S. and 3 PM in London as the trend continues. We are on central standard time, and we learned that Alliance & Leicester led the sector’s decliners, followed by HBOS, Northern Rock, Royal Bank of Scotland, and Barclays. US-based Citigroup CEO Chuck Prince resigned which spooked the market.

$10 billion write downs for HSBC and Merrill Lynch?

Written by Timothy Blake on November 03, 2007 under Archives, Economic Impact, Investors, Lenders

Thus far write-downs in excess of $10 billion (USD) has been the playground of HSBC. Predictions, if they are correct, show HSBC will have some company in that lofty arena. Shares of Merrill Lynch & Co. fell almost 8% Friday in their biggest one-day decline since the aftermath of the Sept. 11, 2001 terrorist attacks, after Deutsche Bank downgraded its stock and predicted the Wall Street giant might have to write down as much as $10 billion in relation to the subprime mortgage crisis.

Japan subprime exposure less than others

Written by Timothy Blake on October 30, 2007 under Archives, International, Investors

In keeping with the old idea of how to win friends and influence enemies, subprime issues in the United States continue to effect other countries. We must remember that some of the biggest U.S. subprime lenders were not American banks. Consider HSBC, with losses in excess of $10 billion (USD). Granted, HSBC bought predatory lender Household International, but HSBC is headquartered in London. Investments in mortgage backed paper seemed to spread like cancer around the world, but some countries were more conservative. Here is what we see today in Japan:

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