Bigger Mess to Haunt US again

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naeron

naeron

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About 3 million U.S. borrowers have Alt-A mortgages totaling
$1 trillion, compared with $855 billion of subprime loans
outstanding, according to Inside Mortgage Finance, a trade
publication in Bethesda, Maryland. Of the Alt-A borrowers, 70
percent may have exaggerated their income, said David Olson,
president of mortgage research firm Wholesale Access in Columbia,
Maryland.
Source: Bloomberg News



*****The dance of the mortgage devil is not yet over *****
 
The Bloomberg story this am estimates that Fannie and Freddie hold about $550 billion of the roughly $1,000 billion in Alt-A's that are outstanding (representing roughly 3 mm mortgagees).

Now you know the rest of the story.
 
what a coincidence... i msn'd that exact quote to a friend of mine this morning when discussing the current snafu that is the US housing / credit crisis... it boggles my mind to ponder the size of this mess...

We aren't seeing much of a similar effect on the australian housing market even though lending standards have been similarly lax over recent years... what we ARE seeing though, is several of our major banks repeatedly denying having any exposure to these low-doc liabilities, and then announcing big write-downs anyway... Interesting times
 
I am kind of thinking initiating coverage on Financials and see when can I buy them. I will wait for the bottom which is yet to come, and then buy these goddamn investment bank stocks again ..

btw the new kid on the block will be "Covered Bonds" lemme know if you guys need introductory documents on this ...
 
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