Wednesday, March 19, 2008

Alt-A Means "We Don't Pay"...

Delinquencies in Alt-A loans continue to rise...

Alt-A Delinquencies Continue to Rise

According to the article, 11.7% of current outstanding balances of securities rated by S&P in 2005 were delinquent in Feb, 15.9% of 2006, and 14.3% of 2007. Seriously delinquent loans, those at least 90 days past due or in foreclosure continued to rise for all three vintages with 2006 (about 10%). I blame it all on Bernake. Note that Bernake took over the reigns in 2006. Instead of continuing to tighten to squash the ridiculous excesses in lending, he allowed it to continue. Now everyone is "shocked" at how poorly these securities are performing. And the Fed's answer? Slash interest rates again, bail out the banks, and start the process again...

3 comments:

Stephen said...

Come on now K10 I am shocked by your comment on Ben. While he does owe me money (ask Bill Murray....Stripes...Barnake...that guy owes me money!) how can you possibly blame him for this mess. There is only 1 person who is responsible...May I introduce Mr. Alan Greenspan. Seriously, how did he not know that leaving rates at 1% was going to have very bad results. I mean 2/28 loans, no doc loans, everyone with their hand in the cookie jar. They all played a role but Mr. Greenie knew the proverbial shit was about to hit the fan and he did what any person would do after such a long and illustrious career. He left giving his newcomer a little bit of the limelight b/c the problem was a year out. This way it gave him some breathing room and then poor ole Ben was left giving testimony in front of a bunch of Congresspeople (I don't know I like that word it just came to me) looking as though someone had just ripped the stuffing out of his favorite teddy bear. I almost always are in agreement with you K10 but on this one I'm holding Mr. Greenspan accountable.


p.s. I am thourghly enjoying our bantering though. Nothing like sitting back and taking shots from the cheap seats. They just haven't asked us to come help fix yet.

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Janet Cooney said...

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My name is Janet Cooney, I am a happily married woman blessed with 3 kids to and I am from Portland, Oregon. A weeks ago I was browsing through the Internet looking for possible means to secure a loan since my bank and other credit union I have visited all denied me access to loan due to poor credit. I came across a testimony searched by a woman on how she was able to secure a loan from Kendrick Investments Limited with the help of Mr Christopher Kendrick who is the director of the company, contact number:- +13862022899 On her testimony she advised anyone looking for a loan to contact them stating that he can help in granting loan even with poor credit I contacted her to be sure and She advised that I give it a try cause he also granted her a loan despect her poor credit So I sent a loan request mail to them and explain my financial situation, they took me through the loan process with an interest rate of 3% and granted me a loan of $68,000USD. Today my business is completely restore and my family are all doing well. To everyone out there If you must contact any lender to a loan you need with better repayment schedule, contact Kendrick Investments Limited email:- kendrickinvestmentslimited@outlook.com