July 07, 2008

I'm back... I see toxic lender IndyMac is toast, laying off 1/2 their staff, and Fannie and Freddie are likely insolvent. So what else did I miss?


Ho-hum, another day, another corrupt housing-bubble-company meltdown. Or two. Or three.

Goodbye Indymac employees. Thanks for orchestrating one of the greatest financial frauds in American history. Thousands more of you lost your jobs today, but like Angelo Mozilo at Countrywide, your kingpin of fraud (aka "liar's loans"), CEO Michael Perry, still walks the earth a free man.

Hopefully not for much longer.

The Great Unwinding is here folks. Right on schedule.

See it live. Right before your eyes. Every day. For a long, long time to come.


44 comments:

Anonymous said...

No more vaca for you - I need my fix everyday!

keith said...

Oh, it's nice to see Bank of America stock down about 14% since they took on the cancer of Mozilo and Countrywide. Or about $15 billion in market cap.

How idiot CEOs like Ken Lewis at BofA or Michael Perry at IndyMac keep their jobs is beyond me. And shows the level of corruption found in American company boardrooms today.

Anonymous said...

keith, do a redux on that poll about who we thought would go under first, that you put up a few months ago. i picked indymac. do i get a prize?


ha ha ha

Lost Cause said...

I am dancing in the streets over the demise of these a**holes.

Yes, you guessed it -- I am a former customer.

Chris said...

You missed portfolio.com's "Who Killed the Economy" Blame Game! It's set up like the NCAA Tournament brackets. No surprise that Greenspan is in the lead:

http://www.portfolio.com/interactive-features/2008/06/Who-Killed-The-Economy

Anonymous said...

Should I sell SKF I bought at 100 a couple of months ago - today at 170.

Are the financials going to go even lower?

Seems almost impossible!!!!!

Anonymous said...

You missed some L.A. times story about Vicki Miller in Altoona PA that is gonna lose her 30k house due to the Refi and spend game.

Paul E. Math said...

Tinfoil hat warning.

Today might also be the day that the PPT showed that its powers are limited.

The PPT manufactured a higher open which eventually faded - the real market taking prices down almost 2% from the day's peak. As they always do, the PPT orchestrated a 'rally' in the mid-afternoon and they brought prices back into positive territory. Despite pulling out all the stops the PPT lost the battle and the markets ended down 1/2% on the day.

I'm not sure I believe any of this but the story sure seems to fit.

Anonymous said...

Please explain this: If Fannie & Freddie are about to be deemed insolvent, then what vehicle does Congress have to implement the new Foreclosure/Lenders Bailout Bill with. FHA can't implement this by itself can it? And who is going to rescue Fannie & Freddie cause we know the Bush admin will not let this happen until the next admin gets in?

Anonymous said...

about time. They sure hung around for longer than I thought they would and they are technically not gone yet!

eric in vegas said...

IMB down 32% after hours. I think I see the fat lady warming up.

Mark in San Diego said...

Guess a lot of unemployment in Pasedena now that IndyMac is about kaput. . .another day another meltdown. . .even the optimists now are saying another two years of a grind-down. . .I kind of wish we would just have a nice 6000 point drop in the DOW like 1929 and get it over with. . .it reminds me of the tech meltdown over three years. "I just can't believe pets.com is down 50%". . ."maybe we should average down."

When people NEVER want to invest in real estate again, we have reached bottom - still too many "investors" out there.

Edgar Alpo said...

Fannie was the biggest slut in town, the gubmint whores will be doing her next. Yuck.

Gerbil said...

I just noticed Freddie Mac today. Wow look at that share price. $12. I remember getting out of that at $55. I didn't make a dime, but didn't care after reading "The Coming Crash in the Housing Market."

What a disaster in the making. Government's involvement in the American dream is making housing unaffordable. Since when is it the responsibility of the Federal Government to make sure everyone has a big happy home?

Anonymous said...

Why would these CEO's and their cronies care about what happens to the company or investors? As long as they received the bonuses, perks, and high pay during the ride up they win.

Just life in America these days.

Gerbil said...

Hardly a peep about IndyMac in the mainstream today. What happens when Freedie Mac and Fannie Mae go under?

And it is truly amazing how bad the experts at our banks and Wall Street got it over the past years. It's so nice to see their empires crumbling.

Anonymous said...

Yeeah, IMB goes down in flames, and there is barely a mention of it on Marketwatch, CNBC, etc....
WTF??

I agree Keith...it is nice to see BofA stock down nicely....shows what kind of confidence people have in a bank so willing to fleece taxpayers to get the deal done. FU Ken Lewis!! Way to make your company the most hated corporation in America....guess your insatiable GREED just got the better of you, huh??

Bank of America is the new Countrywide!!

Anonymous said...

Keith ---

I wish we could see where our US politicians are sending their cash right now... I would bet anything most of them are banking overseas, because they KNOW the damn lid is about to blow off this popsicle stand, and their money will be about as worthless as what they do everyday--NADA!!

How can a person research where our elected officials keep bank accts??

That would be a real COUP and a dead giveway as to the confidence they really have, as their corporate buddies bleed this great country DRY!!

grilled club w/side of fries said...

Hey Keith! Could I get a side order of bacon with that toast?????

yummmmmm..........

Anonymous said...

Rich people in America are above the law.

Anonymous said...

Who's next? WAMU? SunTrust? Wachovia? Downey? BankUnited?


ALL OF THE ABOVE????


Scary time Keith.

Anonymous said...

We could send the Senators Pink slips with comment... due to the unfortunate nature economically speaking you have been relieve of you position effective immediately. Oh, and we earmarked you pension and health care plan to subsidize a generalized fund that will pay for the removal of said Senators if they refuse to go peacefully. Thank You and Good Luck.

Anonymous said...

I think they may have been just de-listed....I'm sure it will be on the news tomorrow.

Nick said...

Oh yeah, the great unwinding is coming. Isn't that what you said a couple of months ago and have kept on saying over and over again. My advice to you Keith and your minions is to get a life and listen to the likes of Lawrence Kudlow. No matter what, he is always bullish on America. History has shown time and again that America always rises to challenges and thus that is why we are special in comparison to other nations and cultures.

edd said...

Maybe the unwinding was stalled
by insiders to allow them to cash
out and move assets offshore.

Mitesh Damania said...

I used to be a contractor at Indymac late last year. The majority of their staff were H1s from India contracted by Cognizant. Only 20% of the staff were from around here. So cutting half the staff isn't cutting that many bodies.

Paul E. Math said...

Fannie and Freddie truly are 'too big to fail'. The government will bail them out and they probably already know this. That is why they are planning for Fannie and Freddie to play a major role in this bailout plan - because they are going to bail them out anyway.

When they bail out fannie and freddie they will blame 'the housing bubble', refusing to acknowledge that it was government policy that, when it had a chance to act responsibly and save the system without bailouts, made the situation that much worse.

Congrats to the person who picked Indymac to tank first but, technically speaking, they have not completely hit BK yet. Or what was our criteria for the contest? I picked Fannie but maybe my pick won't count if Fannie is bailed out before it can actually become insolvent.

John said...

Nick--

WHOA there boy- you need to back away from the Kudlow Kool-aid. That shytt is really going to your head.

Bullish?? That's fine when its backed by numbers and solid statistics, but when its based on pure FANTASY, it's all going to come crashing down...just like our economy is doing right now...

Kudlow is a paid shill and nothing more.

Anonymous said...

The financial experts are predicting a long run for commodities, just as they did housing and the internets.

Here's a suggestion for the next stupid question:

What comes after the commodity collapse?

Texan_for_life said...

Read and study your bible. We ARE in the end times. If you just take the time to study, you'll be amazed at what your hardened heart did not allow you to consider.

michael said...

there is corruption in corporate america at all fracking levels...it sickening. read "snakes in suits".

michael said...

"do a redux on that poll about who we thought would go under first, that you put up a few months ago. i picked indymac. do i get a prize?"

wouldn't the answer be bear stearns?

Budvar said...

Nick said...

"History has shown time and again that America always rises to challenges and thus that is why we are special in comparison to other nations and cultures."



History?? America?? Cultures??

Listen up now, I hate to break this to you, but I've socks in my drawer that have more history and culture than America will ever have!!

Boom2Bust.com said...

So Keith, did you party in Russia, or did the Party find you?

Boooo! Bad one, I know...

Anonymous said...

Anonymous Anonymous said...

Rich people in America are above the law.

----------------------

That is old news.

Anonymous said...

Nick is a troll stoking up the idiots

Lost Cause said...

I think I see the Virgin Mary.

Anonymous said...

Nick,
I would be willing to bet that the Greeks and Romans thought they were "special" in comparison to other nations and cultures as well. Hmmmm how it did it turn out for them I wonder...

Republic's fail. You may actually live long enough to see the historic US Republic fail.

That 'eternal vigilance' thing is not just about monsters under the bed or bug a boo terrorists. It is also about keeping greed and corruption in check with extreme prejudice. We have (as a whole) gotten complacent and it will cost us. It is also about humility. We are not better than everyone else as it turns out. Just another deadbeat living beyond his means.

That whole exponential curve thing, are we at 4 days or 1 to be able to do something about it.

Roadkill

Anonymous said...

Short oil.
Buy financials.
Makes a ton of $$.

Or blog all day about how awful life is.

Your choice.

toasted whitebread w/ loaded colt 45 said...

Bread and guns or was that guns and butter? Does'nt matter we are the worlds largest arms dealer, who needs bread when you hav guns.

Anonymous said...

Greg Swann cant afford to go to Vegas anymore because he is broke.

You missed that.

LyndonLarouche said...

The losses are greater than what you see from the official prices at which homes were bought and later sold for a loss. Those don't reflect the thousands poured into remodeling and landscaping, along with the high property taxes you pay because of inflated housing prices.

douche inquisitor said...

Nick, do you douche with Summers Eve Vinegar & Water, or Summers Eve Tropical Rain?

I'm thinking that with your delusional views of the market, you're probably a simple man. Therefore you probably douche with Vinegar & Water if your views are aligned with the conservative, cocaine-snorting douchebag known as Larry Kudlow.

Anonymous said...

You *had* to go on another trip, didn't you?