I'm liking GM's chances of going under more lately, since GMAC, the only bright spot there, is now blowing up. Also some of the lenders like Countrywide (lots of insider selling) and FBR (very appropriately the new Phoenix Open sponsor!) and insurers like PMI and Triad Guarantee.
Actually, on GM, I'm 99% sure this stock and company are going under. They HAVE to, not only because people aren't buying their inferior products anymore, not only because of the accounting scandal, but one word - Pensions. They gotta dump 'em.
Then after GM, the mother of all bankruptcies - Fannie Mae or Freddie Mac.
Remember f*ckedcompany.com for the .com blowouts? We need them to add a real estate section now.
Give me your best picks and we'll assemble the HousingPanic Real Estate Dead Pool holdings index to track for The Banker.
Credit derivatives rocked by loss at GM finance arm
The discovery of huge hidden losses at General Motors's finance arm have raised fresh fears of bankruptcy at the world's biggest carmaker, sending tremors through the credit derivatives markets
The struggling group asked for a filing delay after admitting to an extra $2bn (£1.1bn) in accounting errors at its finance arm GMAC, raising total losses last year to $10.6bn. The news triggered a sharp spike in the cost of default insurance on GMAC's bonds, rising 75 basis points overnight.
15 comments:
Countrywide CEO Mozilo $30 million so far this year.
http://www.insidercow.com/history/company.jsp?company=CFC
Unfortunately, if GM goes belly-up, most of its employees will flock here to Florida, where out-of-work unionized slobs always end-up, thinking they can live on the beaches and eat oranges plucked from trees. Everyone in Michigan and Ohio believes this, and Florida looks like a giant sanitary land fill because of it.
Truth is, it costs WAY more to live here than in Michigan or Ohio, thanks to these Northerners swarming in and sending prices sky high.
I don't think the government should bail out GM, the airlines, or any other businesses, but, of course, politicians do whatever it takes to get re-elected, and buying votes is the most predictable strategy of all.
Hey Anon! That's my mom you are trash talkin'. It doesn't cost "more" when your arthritis is not acting up and you don't get a heart attack shoveling snow. Besides it isn't the gray panthers with their money draining out of the rust belt into the Florida economy, they buy double wides and a cadillac, big deal. Your "anger" should be directed at easy money lending that put twice as many buyers on the hunt for the same number of homes.
As to GM, it probably needs to fall down before it can be helped back up. Probably on the Saturn model. With one exception; GMAC. Hang their carcasses on the fence of a closed plant in Detroit as a warning.
Centex will be on its way.
15 Billion in debt and 60 million in cash. During the boom they lent to everyone. The good loans they sold, the bad loans they kept. Plus their sitting on tons of land that is dropping by the day.
Robert Coté said...
"Hey Anon! That's my mom you are trash talkin'. It doesn't cost "more" when your arthritis is not acting up and you don't get a heart attack shoveling snow. Besides it isn't the gray panthers with their money draining out of the rust belt into the Florida economy, they buy double wides and a cadillac, big deal. Your 'anger' should be directed at easy money lending that put twice as many buyers on the hunt for the same number of homes."
I wasn't referring to old people, but to unemployed auto workers (and others), who flock here thinking it's cheaper, warmer, and the place to be, and in the process making it expensive, trashy, and definitely the place NOT to be.
Lenders and developers, of course, are responsible for turning Florida into a parking lot, but it's virulent Northerners who have overwhelmed the locals, and destroyed the eco-system (there is not a square inch of waterfront property they haven't built flashy junk on, to the detriment of wildlife, swamps, marshes, and everything else). The same thing happens when inappropriate flora and fauna are introduced into new regions. What people in New York, New Jersey, Michigan, Ohio, and Pennsylvania need to recognize is that they do not have a right to seize every southern region for themselves; nor do they have the right to transform these regions into the crowded, dreary garbage piles they've left behind.
Just for laffs, put me down for D.R. Horton as the first HB to BK. They're already doing 25-30% reductions here and there, and that's just about the entire profit margin.
If you want a date though I say not before late 2007. It'll take at least two nightmare spring selling seasons to undo two years of bubble profits.
Who cares...
Can we get off the who's stupider tack. Its not about locales. Basically, its Republicans and christian morons who have driven this country into the tank with their blind shut-up commie patriotism, racism, obsession with gays and abortion and supply-side anti-union, bow to the military, police and corporate gods voodoo economics. Well, now you get to enjoy the spoils of your stupidity. Of course, Dems are in the boat, too. I for one am all cash and so glad I didnt buy a house yet, even though I'm in the one market in the country, Seattle, that isnt showing any cracks yet. I'm just wondering whether my credit union might tank over all this. I'll be fascinated to see of the FDIC does what its supposed to do and rescue insolvent banks.
I've got a preapproval hanging over there at Countrywide. When I went in, I told them I wanted a fixed mortgage and they were still trying to peddle me these fancy ARMs. I know they peddled a lot of those to low-income people. Only a stupid Harding-style greedy Republican regulation structure would've allkowed this kind of financial nonsense. You really gotta wonder with these business school geniuses sometimes.
Same trust-fund skanks that dreamed up this project Iraq and then handled it in the stupidest way possible. hello, you dont need to be a military scholar to know you secure the weapons depots. Get ready for a draft, folks, your babies are headed to the ME after the next election.
Now my real estate agent has a tinge of fatigue in her voice. They know the storm is coming. Hopefully, this will only run us partly over. Dont want the whole economy to tank, unless we're talking hyperdeflaion, and even though I'd be sitting pretty, that's a bit too unpredictable an outcome to hope for that kind of DOOM.
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