Market Soapbox 02/12/07
MON, followthrough down, DJIA -28 on lower volume with ugly internals. All DOWN cept DJTA. Bonds down 10 yr 4.80, $ up vs 121.89y & vs 1.2963E, WTI crude down 3.8% $57.62, gold down 1% $666.
More sub prime mortgage based woes as the REIT's coming off historic highs took a pounding today along with the sub prime sector. Sub prime loans account for 20% of all loans made in the last 2 years.
8% of Washington Mutual's loans are subprime, their mortgage business lost $122M in Q4, thanks entirely to losses in its subprime segment.
Early this month, Friedman Billings Ramsey & Co. said the default rate on subprime loans that were packaged into bonds reached their highest level this decade.
Last Wednesday, in a report titled "Inferno," Credit Suisse analysts said the 60-day delinquency rate for Q2 loans that were six months old had doubled from a year earlier to 5.7%.
For the 5th straight month, 100K+ homes entered into foreclosure. Foreclosures jumped 35% in December versus a year earlier.
I smell smoke, and where there's smoke, there's fire...
More sub prime mortgage based woes as the REIT's coming off historic highs took a pounding today along with the sub prime sector. Sub prime loans account for 20% of all loans made in the last 2 years.
8% of Washington Mutual's loans are subprime, their mortgage business lost $122M in Q4, thanks entirely to losses in its subprime segment.
Early this month, Friedman Billings Ramsey & Co. said the default rate on subprime loans that were packaged into bonds reached their highest level this decade.
Last Wednesday, in a report titled "Inferno," Credit Suisse analysts said the 60-day delinquency rate for Q2 loans that were six months old had doubled from a year earlier to 5.7%.
For the 5th straight month, 100K+ homes entered into foreclosure. Foreclosures jumped 35% in December versus a year earlier.
I smell smoke, and where there's smoke, there's fire...
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