tagged w/ Sub Prime Mortgage Crisis
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Stan Kurland. Remember this name. Stan Kurland.
It seems the man who sold everyone Sub prime mortgages is now a leader in purchasing those same "Toxic Assets" back at 30 to 50 cents on the dollar...
The cycle continues... The new name is PennyMac. Once again, It's PennyMac.
From the article:
STAN Kurland has been called a crook, an arsonist, a "depraved, sub-prime creep" and has even been likened to cannibal serial killer Jeffrey Dahmer.
And he got his pile selling destructive sub-prime home loans to poor people during the salad days of the US housing boom, so there's no shortage of folk who think jail is too kind for him.
Kurland is the former president of detested mortgage giant Countrywide Financial, the predatory lender whose home loan portfolio grew from $US62 billion to $US463 billion between 2002 and 2006. That's when he jumped ship, cashing out $US200million worth of Countrywide's stock before the full force of the housing collapse hit and sent the US economy into a nosedive.
Three years on, Kurland is getting rich all over again, this time by buying up distressed mortgages and mortgage-backed securities from wobbly banks and the US Government.
Through his quaintly named PennyMac, Kurland has been quietly buying these assets for pennies in the dollar and redesigning them into loans that are affordable to the homeowners.
Please read article and discuss--Stan Kurland. Remember this name. Stan Kurland.
It seems the man who sold everyone... more
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U.S. Mortgage Meltdown Reported on CBS!!!!
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Since last summer, Americans have seen their investments shrink and their property values plummet. At the heart of the problem is something called the subprime mortgage crisis, which began back then and continues to ricochet through the economy.
It sounds complicated, but it's really fairly simple: banks lent hundreds of billions of dollars to homebuyers who can't pay them back. Wall Street took the risky debt, dressed it up as fancy securities, and sold it around the world as safe investments. If it sounds like a shell game or Ponzi scheme, in some ways it was a house of cards rife with corruption, greed, and negligence.
Real estate agent Kevin Moran gave Kroft a tour of the wreckage in one subdivision called "Weston Ranch," with block after block of vacant and abandoned houses.
"If you see a 'for sale' sign in this neighborhood that probably is a sign of distress, right?" Kroft asks.
"I would say that, yeah. Two out of three of all the sales are probably foreclosed properties, and/or people who are in distress," Moran explains.
The "for sale" signs and the overgrown lawns in Weston Ranch only show part of the picture. To get a real overview, you need to look at a map from Sean O’Toole's Web site, foreclosureradar.com, which tracks distressed properties in Stockton and other California communities.
"The light blue circles are folks that have gone into default. And that means that's the first step of the foreclosure process," O'Toole says, explaining how his maps color-code properties. "The dark blue is auction properties. And the red icons are properties that were sold at auction, had no bid, and therefore went back to the lender."
As of last week, there were 4,200 Stockton homes either in default or foreclosure; $1.4 billion in bad loans in just one California community, and it is far from over.
"Two months from now, what's this map gonna look like? How many of those light blues are gonna be red?" Kroft asks O'Toole.
"We'll probably see at least 60, 70 percent of these light blues turn red. And we'll see at least this many light blues again," O'Toole predicts.
Banks are auctioning off houses all over California and in South Florida, in Nevada, and in parts of Ohio and Texas, the result of a huge real estate bubble that began forming in Stockton back in 2003, when people priced out of the Bay Area and Silicon Valley discovered that you could buy a four-bedroom home there for just $230,000.
Developers started turning asparagus fields into subdivisions, and lenders handed out free money to anyone who wanted to buy.
"What do you mean by free money?" Kroft asks Jim Grant, the editor of "Grant's Interest Rate Observer" and one the country's foremost experts on credit markets.
"I mean free money. I mean you had to apply not to get a loan, almost. Sometimes you have to apply to get a loan, you almost had to apply not to get one," Grant says.
"When you opened your mailbox in 2004, 2005, you could barely -- people were pressing on you, if you were not institutionalized, all matters of schemes in which to expand your personal debt and mortgage debt. You could, and people did, borrow more than 100 percent of the price of a house with the most fragile of financial bonafides," Grant explains.
Since last summer, Americans have seen their investments shrink and their property... more
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A short video by YouTube.com user GHoeberX covering America's unsustainable pattern of economic growth and the consequences of the path that we're on.
"We must borrow $3 billion from foreigners every business day to maintain our extravagent spending. Our national debt now is increasing $600 billion per year, and guess what, we print over $600 billion per year to keep the charade going. But there is a limit and I fear we are fast approaching it." ~ Congressman Ron Paul, M.D.
"Foreign interests have more control over the US economy than Americans, leaving the country in a state that is financially imprudent. More and more of our debt is held by foreign countries – some of which are our allies and some are not. The huge holdings of American government debt by countries such as China and Saudi Arabia could leave a powerful financial weapon in the hands of countries that may be hostile to US corporate and diplomatic interests.” ~ David Walker, US Comptroller General
"There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved." ~Ludwig von Mises
Recommended reading;
The Dollar Crisis, Richard Duncan
Crashproof: How to Profit from the Coming Economic Collapse, Peter Schiff
The Collapse of the Dollar and How to Profit From It, James Turk & John Rubino
A Bull In China, Jim Rogers
The Revolution: A Manifesto, Ron Paul
A short video by YouTube.com user GHoeberX covering America's unsustainable pattern of... more
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Letitia Youngblood struggled through repairs, government paperwork and shady contractors to rebuild her home after Hurricane Katrina. Then her mortgage payments recently jumped 35%.Letitia Youngblood struggled through repairs, government paperwork and shady... more
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samply
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added this
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1 year ago
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The subtitle to this article is, "How the Bush Administration Stopped the States From Stepping In to Help Consumers." The article is written by Eliot Spitzer.
We need some laws written to protect "whistle blowers".
I'm not saying Spitzer was right hiring a prostitute. Just makes you wonder what can happen to you if you cross the wrong people.
The subtitle to this article is, "How the Bush Administration Stopped the States From... more
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Wow thats allot of cash... I could have bought Jaguar from Ford and still had money to buy some good guitars!Wow thats allot of cash... I could have bought Jaguar from Ford and still had money to... more
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Sinister outcasts from Princeton's economist Krugman - He expects the US housing market to drop 25% overall.
"I'm not one of those people who thinks the Great Depression is coming back, but there's lots of echoes. [...] I think we know more than we did then, and just the fact that we have a big federal government is a stabilizing factor. But the current problem is still pretty awesome."
At the same time, he admits that "what we're having looks like a minor-key version of the bank failures in the early 1930s. Now it's mostly not banks, it's markets that were serving the function of banks and institutions that were doing banklike stuff, and it's not as bad - at least so far. But it's a question. If we were actually having a string of bank failures, then we would know what to do. The government would essentially seize the banks and guarantee the deposits. But what do you do when you have a wave of failures of things like the auction-rate securities market, which was effectively a funny way of doing banking? If you look historically at other financial crises, they typically end up with big government bailouts. But how's that going to work in this case? We don't even know who to bail out. And part of the problem is we don't even know who owes what to whom."
I am wondering if today they really know more about troubles in the financial markets than in the 30's. The situation seems to be very different today - notwithstanding the perplexity about the economy's inner workings, which then as now seems do dominate. Not comforting, I would say...
What do you think?Sinister outcasts from Princeton's economist Krugman - He expects the US housing... more
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Xizor
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added this
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1 year ago
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Tent cities crop up in LA as the sub prime mortgage fallout continues during the US economic downturn. Tent cities crop up in LA as the sub prime mortgage fallout continues during the US... more
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Sean worked as a loan officer for 8 months. When the mortgage industry slipped into free fall, he started a company cleaning out foreclosed houses. He has an inside view into America's foreclosure mess. Every day Sean is faced with the discarded dreams and memories that people leave behind.Sean worked as a loan officer for 8 months. When the mortgage industry slipped into... more
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According to US Treasury Secretary Henry Paulson. Not just the subprime collapse, folks, the whole goshdarned housing market.According to US Treasury Secretary Henry Paulson. Not just the subprime collapse,... more
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U.S. banks are meeting with U.S. Treasury officials to create a $100-billion fund to stave off the danger that there could be a fire sale of shaky mortgage-backed securities and other distressed assets.
great...let's reward the banks for selling mortgages and securities that shouldn't have been sold in the first place.
I don't see how this is a solution for the problem...U.S. banks are meeting with U.S. Treasury officials to create a $100-billion fund to... more
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Explains the sub-prime lending crisis currently affecting the stock market in under two minutes.Explains the sub-prime lending crisis currently affecting the stock market in under... more
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