4 replies to this topic

[nicolasillo]

unless the Beige Book saves the situation!

http://www.bloomberg...6...&refer=home

[ogm]

You do realize that this -12% number not only makes the 25 bp rate cut certain, but also "shock the system" 50 bp cut a possible reality. Besides its old news anyway. The real estate debacle was being discounted for many weeks already. We all knew 2 weeks ago that real estate is going to zero or close to it.

[nicolasillo]

You do realize that this -12% number not only makes the 25 bp rate cut certain, but also "shock the system" 50 bp cut a possible reality.

Besides its old news anyway. The real estate debacle was being discounted for many weeks already.

We all knew 2 weeks ago that real estate is going to zero or close to it.

If I remember well, and pls correct me if you think I am wrong, for almost a year now and up to the a couple of months ago everytime that bad housing numbers came out most of the analysts were saying we reached a bottom! Now if you think that two weeks of a decline will price in the current and future housing situation then what can I say.....I must be very naive.....

And do you also think that a rate cut will help the situation now? I think it s too late!

Edited by nicolasillo, 05 September 2007 - 10:01 AM.

[Sentient Being]

The magnus collapse is going to hit WM hard. They owed WM some 1.3 billion dollars and have LESS than one billion to share between all creditors. Even if WM can salvage 600 million they will lose 600 million on this one loss. How many more, how many homeowners walk when the loans reset? I don't think a rate cut returns that to WM.

Edited by Sentient Being, 05 September 2007 - 10:41 AM.

[tommyt]

a 1/4-1/2 cut isn't going to do anything...the momentum is already rolling...like trying to turn around a super tanker quickly, it won't happen...helicopter Ben is behind the curve and must know it...things will play out on their own. Bubbles don't end nicely, simple.