Its been a rough week for mortgage lenders with AHM filing for bankruptcy, Novastar and few other mortagage lenders shutdown and then 3 Bear Stern hedge funds shutting down. Wells fargo, Bank of America and Countrywide have hiked Jumbo rates to 8%. At this level, a 100k loans has a payment of 800$/month. If you take average homes in California the payments could be 5k+ a month for 600k+ home. You can rent these houses for 2k/month.
Bear Sterns, Goldman Sachs and other financial companies are taking massive hits on their stock prices. Homebuilders are pounded with valuations dropping more than 50-60% over the past months.
With foreclosures hitting all time records, 1Trillion dollars of ARM's set to reset towards the end of the year I think we are in a recession.
The bubble of housing has busted. What effect will it have on Indian real estate ? Thats my million dollar question.
Housing meltdown and Subprime fallouts
Housing meltdown and Subprime fallouts
Nada effect, no direct connection between US RE and India RE.
A lot of people are thinking that if US economy tanks then it will take Indian economy with it (and china, phillipines, Mexico etc??)
there are too many variables, almost the "Butterfly effect". There maybe some kind a correction, if that!
A lot of people are thinking that if US economy tanks then it will take Indian economy with it (and china, phillipines, Mexico etc??)
there are too many variables, almost the "Butterfly effect". There maybe some kind a correction, if that!
Housing meltdown and Subprime fallouts
Fed has been on "inflation watch" for the longest time - never mind that the RE market & the financials blew up. It will be interesting to see what next Tuesdays Fed meeting holds. Personally I dont expect a rate cut, but a mere change in language and/or addressing the "subprime meltdown" should do the stock markets some good.
Housing meltdown and Subprime fallouts
sftrade;37671http://www.flicklife.com/cc7fe9e453f3a2f26f24/Cramer_flips_out_on_MSNBC.html
Cramer flips out on MSNBC[/quote]
Hmm, Wonder if this was a pre planned outbursts from this guy, a show or a spontaneous Cramer. Probably the spontaneous Cramer. The host handled it well and it was good that she resisted from going to commercial break.
Housing meltdown and Subprime fallouts
Hi all,
We had parked some of our RE gains in the countrywide bank for short term CD as the money was ear marked for future RE purchases. But with my health going south, our plans to buy house are on hold indefinitely as my longterm career prospects look bleak. Also with countrywide 's mortgage lending woes, we are wondering is it safe to continue keeping there ? Are there any precedents for banks declaring bankruptcy and not fulfilling FDIC obligation ? Our principal + interest goes above FDIC limits. Is it prudent to withdraw even with some penalty?
Thanks for your inputs.
We had parked some of our RE gains in the countrywide bank for short term CD as the money was ear marked for future RE purchases. But with my health going south, our plans to buy house are on hold indefinitely as my longterm career prospects look bleak. Also with countrywide 's mortgage lending woes, we are wondering is it safe to continue keeping there ? Are there any precedents for banks declaring bankruptcy and not fulfilling FDIC obligation ? Our principal + interest goes above FDIC limits. Is it prudent to withdraw even with some penalty?
Thanks for your inputs.
Housing meltdown and Subprime fallouts
RaReSha3;40300Hi all,
We had parked some of our RE gains in the countrywide bank for short term CD as the money was ear marked for future RE purchases. But with my health going south, our plans to buy house are on hold indefinitely as my longterm career prospects look bleak. Also with countrywide 's mortgage lending woes, we are wondering is it safe to continue keeping there ? Are there any precedents for banks declaring bankruptcy and not fulfilling FDIC obligation ? Our principal + interest goes above FDIC limits. Is it prudent to withdraw even with some penalty?
Thanks for your inputs.[/quote]
You may want to read what happens when Bank goes out of business
One more, Californians rush to pull money from Countrywide Bank
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submarine66
- Posts: 97
- Joined: Tue Jan 16, 2007 11:08 am
Housing meltdown and Subprime fallouts
laks0;40309You may want to read what happens when Bank goes out of business
One more, Californians rush to pull money from Countrywide Bank
A related query, what happens when one's brokerage goes out of business?
I believe Securities Investor Protection Corporation (SIPC) provides a kind of insurance. If your broker goes under, SIPC will see to it that securities held for you in the ''Street,'' or broker's, name are returned to you. This protection has limits -- $500,000 in cash and securities per account and no more than $100,000 in cash
What happens in the case of a HNI who may have much more than 500K with the brokerage? Should one use multiple brokerages in that case?
regards
Submarine
Housing meltdown and Subprime fallouts
laks0,Desi,
Thanks for the links; laks0 , your link made aware of the situations where amount goes north of FDIC insured limit. I just carried out the transfer of excess amount to my online savings account though for joint owners, we were well within the insured amount but didn't want to risk any further meltdown and countrywide didn't penalize us.
Yes, is there any safe amount with brokerage?
Thanks for the links; laks0 , your link made aware of the situations where amount goes north of FDIC insured limit. I just carried out the transfer of excess amount to my online savings account though for joint owners, we were well within the insured amount but didn't want to risk any further meltdown and countrywide didn't penalize us.
Yes, is there any safe amount with brokerage?