Who'S Next?

[tidnab]

wamus portfolio consisted 75% of Option arm Mortgages that went toxix and still are going toxic. They got reckless Like Indy amc and Countrywide

1: nothing's wrong with option arms.. the rates are still low... it's the arms with bad paper
2: you're telling part of the story.. we're diversified... we're savings and loan... not a mortgage house like c-wide
3: c-wide went for what 4 billion?? we went for 1.9
4: typically shareholders get paid... but in this case shareholders get screwed.. including every wamu employee that had vested shares
5: All of the companies are having problems with foreclosures ... it's not just b papers... it's not just neg-ams... it's not just option arms... it's not just teaser rate loans... the entire market is collapsing ... I currently have an 802 fico and I'll be going into default (but mine is due to the divorce)..

Anyway... the stockholders & employees got the shaft, the fed did a 3 card monty with wamu.... pretty much all boils down to that

 

[Annu Kumar]

1: nothing's wrong with option arms.. the rates are still low... it's the arms with bad paper
2: you're telling part of the story.. we're diversified... we're savings and loan... not a mortgage house like c-wide
3: c-wide went for what 4 billion?? we went for 1.9
4: typically shareholders get paid... but in this case shareholders get screwed.. including every wamu employee that had vested shares
5: All of the companies are having problems with foreclosures ... it's not just b papers... it's not just neg-ams... it's not just option arms... it's not just teaser rate loans... the entire market is collapsing ... I currently have an 802 fico and I'll be going into default (but mine is due to the divorce)..

Anyway... the stockholders & employees got the shaft, the fed did a 3 card monty with wamu.... pretty much all boils down to that

Nothing wrong with Option Arms?? than why are they extinct now because these phony loans were never suppose to be around they were heavily market during the fake boom years and this was the only reason people making 40k a year could buy a house for 900k. And that was the reason homes went up so quick because ever financial innovation was used to buy the american dream and thats why banks are in trouble because they banked on these loans assuming that Real Estate always Goes One Direction UP!!!!!

 

[tidnab]

a: again ... option arms aren't the problem they've been around for a long time
b: again... problem isn't with the arm as such... the problem was with b paper.. the problem is with 100% loans... the problem was with de-regulation.. I can keep going...
c: they're extinct?? everything's extinct... go try and get a loan now... unless you've got a 780+ and 50% down (maybe I'm exaggerating a LITTLE)... you're not getting a loan... they're ALL extinct... unless you're absolutely golden... and I'm not just talking mortgage... I'm talking car loans too... banks aren't lending (again only a slight exxaggeration)...

I'll still contend that the primary blowup was due to the 17billion dollar run on the bank... and the WSJ agrees with that assessment...

:marchmellow:

 

[DevilDawg3097]

The sub prime mtg bs started all this. There are tons of subdivisions around here where starting price was 450-500k, in reality who could afford these not the avg person but that is who was getting them and not just that they were taking 5yr fix then ballon pops, becuase they thought they would be able to get a better rate not. Then the bs appraisiers where over valueing properties and now all the schmucks who bought those 500k homes are screwed two ways the value of property dropped to 300k can't refi now there stuck with a property the is overpriced and can't afford. Now who eats it.

 

[BlackKnight]

I have a question and it might be a dumb one since I don't know the savings and loan or banking business but I happen to be a homeowner. If the banks are getting into trouble because those customers who got a loan from them can't afford to make the payments for whatever reason, why can't the banks simply work out a deal to drop their rate? Sure they banks wont make AS MUCH but at least they would still have $ coming in and the customer would get to keep their house. Why can't we do that?

 

[TheSickness]

A lot of Bush cronies stand to make a mint off of this...even his own party wont support his plan Bwahahahaha....Redistribution of wealth is all it is....That Includemeout guy is pretty smart after all :burnout: Ding fries are done

 

[tidnab]

I thought I'd add a little update to what's going on with Wamu...

http://www.mmdnewswire.com/investor...versal-of-washington-mutual-seizure-4071.html

and this LOL

http://www.wamurape.org/

even if you put aside the liquidity the bank had, even if you put aside the ongoing OTS audits... someone needs to explain this to me ....

Wamu files bankruptcy with 32.9 billion in assets and 8.2 in debts (I checked 3 sources)... this is WMI (the wamu holding company)

None of it makes sense...
a: WMI has over 25 Billion in assets
b: Wamu Corp 'had' 310 billion in assets
c: Wamu had 400+ billion on deposit
d: Chase picks us up for 1.9 billion?

LOL no matter how you flip those numbers around it doesn't make sense... you guys can say I was drinking the kerry killinger kool aid all you want but the numbers are the numbers... You can't lie to the OTS/FDIC and expect to get away with it....

anyway... thought I'd share....