Comments on: Morning Links 11-20 http://blogs.reuters.com/rolfe-winkler/2009/11/20/morning-links-11-20/ Option ARMageddon Tue, 14 Oct 2014 13:06:34 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Dan http://blogs.reuters.com/rolfe-winkler/2009/11/20/morning-links-11-20/comment-page-1/#comment-3596 Fri, 20 Nov 2009 20:19:44 +0000 http://blogs.reuters.com/rolfe-winkler/?p=4392#comment-3596 Re “Satan the Great Motivator”It would have probably been helpful if unscrupulous lenders, fudging borrowers and two-faced politicians feared some consequences for their actions.Americans lied en masse on their mortgage applications, behavior that has never really happened before. Derivative garbage and short termism by investment banks is a monument weak morals.The popular religion these days is Joel Osteen’s “Your Best Life Now”…. Live for the moment… Pray for God to bless me me me! Holy cow, our ancestors would barely call this religion…

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By: sam http://blogs.reuters.com/rolfe-winkler/2009/11/20/morning-links-11-20/comment-page-1/#comment-3594 Fri, 20 Nov 2009 18:43:30 +0000 http://blogs.reuters.com/rolfe-winkler/?p=4392#comment-3594 might it not be a bit contradictory to say “90% cash + 10% gold has done very well over the past two years (especially on a risk-adjusted basis!)” at the same time as calling concern over debt deflation “pessimism porn”?

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By: DP http://blogs.reuters.com/rolfe-winkler/2009/11/20/morning-links-11-20/comment-page-1/#comment-3591 Fri, 20 Nov 2009 16:03:41 +0000 http://blogs.reuters.com/rolfe-winkler/?p=4392#comment-3591 The article on the 3 guys buying a 2 unit apartment in Manhattan for over $900K with a 96.5% FHA loan just about made me throw up. Those guys aren’t buying the property, they’re buying a taxpayer funded option on the property. If the property value goes up, they make money. If the property value goes down, which is much more likely, they put the property back to the lender and FHA eats the loss on behalf of taxpayers.The San Francisco Fed report that was referenced on this blog earlier this week noted that the percentage of housing loans that are subprime is back over 20%, where it was at the peak of the housing bubble in 2006. But now, the subprime mortgages aren’t being funded via private label mortgage backed securities as they were in 2006, they’re being originated by banks and rolled into GNMA securities that are insured by FHA. Here’s a reference to the current state of FHA from today’s NY Times:http://www.nytimes.com/2009/11/20/ business/20mortgage.html?ref=businessInc redibly, the end of the NYT story on the 3 guys buying the 2 unit apartment notes toward the end that Barney Frank’s answer to the FHA problems is to RAISE the limit of the loans they can insure by $100,000 beginning next year and make it permanent.I feel like I’m living in the Twilight Zone.

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