MortgageNewsClips: 35 News Clips for you to scan

September 23rd, 2008 · No Comments

There is so much news lately that I need to send out a longer post than normal to catch up.  I hope things get more normal soon.  This is hard to take. - BC

  

Historic Domestic Use of Exchange Stabilization Fund - Zubin Jelveh  - The government introduced another series of steps Friday morning to bring order to markets, the most unusual of which being the provision of FDIC-type insurance for money market funds using the Treasury Department’s Exchange Stability Fund as a backstop. … move will be the first time in its 74-year history that the ESF will be used for domestic purposes. … The ESF was created in 1934 as part of the Gold Reserve Act. … - portfolio.com 

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5 Lessons for the Next Financial Mania- Rick Newman -  Why do we keep relearning the simplest rules in the world? - US News Blogs

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interesting and has MISH’s proposal - Open Letter To Congress On The $700 Billion Paulson Bailout Plan - MIchael Shedlock - Global Economic Analysis

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The Insanity of Adjustable Rate Mortgages Endures - … Freddie Mac’s (FRE) “Weekly Primary Mortgage Market Survey” and press release …
30 Year Fixed: 5.78%, 0.6 points and fees
15 Year Fixed: 5.35%, 0.6 points and fees
5/1 Year ARM: 5.67%, 0.6 points and fees
1 Year ARM: 5.03%, 0.5 points and fees
Click Broker

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U.S. Household Net Worth Up By 43% Since 2002 - Mark Perry  - Carpe Diem

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4 Tips for a New Regulatory Structure - Dear John Thain blog

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SIFMA Welcomes Sec. Paulson’s Comprehensive Proposal to Relieve Stress on the Financial Markets & Restore Investor Confidence - SIFMA Press Release
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Goldrush?? - Big Financiers Start Lobbying for Wider Aid - JENNY ANDERSON, VIKAS BAJAJ and LESLIE WAYNE - … Nobody wants to be left out of Treasury’s proposal to buy up bad assets of financial institutions. … - NY Times
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Rescue plan likely to include foreign banks - During the weekend, foreign financial institutions successfully lobbied to be included in the U.S. government’s rescue - International Herald Tribune

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Fannie Mae flattens management - Bryant Ruiz Switzky  - Bizjournals.com 

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has many specifics - Dean Baker Proposal - Progressive Conditions for a Bailout - Dean Baker- TalkingPointsMemo
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VIDEO COMMENTARY: Putting The Crisis In Perspective - Paul Maidment -  Time cures debt. Financial crises pass. This one will too. - Forbes

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Fed Should Not Shut Door on Accommodative Policy -  Desmond Lachman - … The Fed would be well-advised to ignore its critics and stand ready to cut interest rates as needed to keep the international financial system afloat.  … - American Enterprise Institute

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Observations on a Crisis - This week we look at a very solid piece of analysis on the world economy from my friends and London business partners Niels Jensen and Jan Wilhelmsen of Absolute Return Partners (www.arpllp.com). I find it is quite useful to read the considered opinions of those from outside the US and particularly from people who have developed keen insight from years in the trenches.  - John Mauldin’s Outside the Box E-Letter 

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Bailout plan hit as unconstitutional - Frank James - It’s a safe bet that the legislative proposal by Treasury Secretary Henry Paulson Jr. to buy up bad Wall Street assets is going to undergo some fundamental revision. - The Swamp at Chicago Tribune

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Core Deposits 1, “The Masters of the Universe” 0 - The investment banks’ Ponzi schemes end at last. That’s good. Vernon Hill explains at bankstocks.com 

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how sad, it is not stopping - The Federal Reserve Board on Monday announced the approval of a policy statement on equity investments in banks and bank holding companies. The policy statement provides additional guidance on the Board’s position on minority equity investments in banks and bank holding companies that generally do not constitute “control” for purposes of the Bank Holding Company Act. The policy statement is attached. 

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Bearish? Read this - they are smart - Treasury Bailout-Interim Comment - Comstock Partners

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Testimony of Chairman Bernanke on U.S. financial markets - Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate - Released by the Board of Governors of the Federal Reserve System

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Quarter of US banks hold GSE preferred stock-ABA -  John Poirier - Reuters

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CAN’T BANK ON IT - LOCAL LENDERS LEFT OUT OF BAILOUT IN HUGE SELL-OFF - Paul Tharp - … Almost every publicly traded regional bank tumbled in a huge sell-off Monday of shares in the generally secure small banks, whose enviable deposits and traditional loans are untainted by the toxic paper of Wall Street. … - NY Post

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Housing Experts Say Bailout Proposal May Do Little for Homeowners - EDMUND L. ANDREWS - … “We are literally spending hundreds of billions of dollars on subsidies for financial institutions,” said Christopher Mayer, a professor of real estate finance and vice dean at the Columbia School of Business. “This won’t do anything to help the housing market. This plan is about buying mortgage-backed securities, not mortgages, and there is a big difference.” … - NY Times 
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Be ticked off - but get over it - Paul R. La Monica - You should be angry about the $700 billion plan to save banks. But once the rage subsides, realize that doing nothing would be disastrous. - CNNMoney.com

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A VC Take on the Market Crash: Short-Term Bear, Long-Term Bull - Posted by: Jeff Bussgang - … The holding period for early-stage start-ups is typically 6-8 years, and so an episodic recession shouldn’t materially affect long-term value creation, … … - BusinessWeek

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FHA MORTGAGEE LETTER 2008-25 - SUBJECT:    Converting Existing Homes to Rentals—Underwriting Instructions - Through this Mortgagee Letter, the Federal Housing Administration (FHA) takes steps to immediately respond to an unscrupulous practice arising in the housing mortgage market that poses a risk to FHA, FHA-approved lenders, and consequently to FHA’s ability to help new homeowners. - details at HUD.gov 

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pix ted2 and 3  About TED Spread: A Rick Santelli View… - Steve Farrington - The TED Spread, albeit still historically high, came down from the highs last week. I would be hard-pressed to call it a ‘rally’, but at least more faith is being shown that the government is doing the right thing. - The Wall Street Stand 

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Tales from Vegas: Cash is King for Las Vegas real estate - Tim Plaehn - Investing Thoughts

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The Financial Crisis (in 400 words) - Businomics - Bill Conerly  

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There is no free lunch - has 5 points you can bet onGaurav -

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MREITs Shafted by SEC - Patrick Harden - Mortgage Reit Journal

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U.S. MONTHLY HOUSE PRICE INDEX ESTIMATES 0.6 PERCENT PRICE DECLINE FROM JUNE TO JULY - Full release at OFHEO :

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Statement of The Honorable James B. Lockhart III, Director Federal Housing Finance Agency Before the Senate Committee on Banking, Housing, and Urban Affairs on the Appointment of FHFA as Conservator for Fannie Mae and Freddie Mac - OFHEO FHFA

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IRA ARTMAN SECTION - thanks Ira:

FW Exclusive - Goldman may target IndyMac to build out its bank network - Tim Catts - Financial Week

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Market Risk - After the Bailout, How Can the Fed Clean Up the Fannie and Freddie Mess? - from [email protected] - … Six current and former Wharton faculty members are nearly unanimous on one point: The government had no option but to keep Fannie and Freddie afloat. … - riskcenter.com
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The Federal Reserve Bank of Kansas City

Paper:  The Panic of 2007 -  by Gary B. Gorton  - … The introduction of the ABX indices, synthetics related to portfolios of subprime bonds, in 2006 created common knowledge about the effects of these risks by providing centralized prices and a mechanism for shorting.  I describe the relevant securities, derivatives, and vehicles and provide some very simple, stylized, examples to show:  (1) how asymmetric information between thesell-side and the buy-side was created via complexity; (2) how the chain of interlinked securities was sensitive to house prices; (3) how the risk was spread in an opaque way; and (4) how the ABX indices allowed information to be aggregated and revealed.  I argue that these details are at the heart of the answer to the question of the origin of the Panic of 2007.- KC FRB



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