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GLG News by Subprime Mortgage Experts (US)

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Douglas RossbachOctober 30, 2008
There is a fair solution to the housing crisis without government bailouts
Analysis of: Why the Feds Rescue Banks, Not Homeowners | www.usnews.com
Author: Douglas Rossbach, Partner, Rossbach Consulting
There is growing momentum in Washington (that is now being whipped into a frenzy by the upcoming elections) to help struggling homeowners directly by buying and or modifying their mortgages.  The government has so far failed to do this, preferring instead to pump capital and liquidity into the...
John JukoskiOctober 23, 2008
Res Capped Out
Analysis of: GMAC Struggles With Financing | www.nytimes.com
Author: John Jukoski, Former First VP & Director of Collateral Analysis, Federal Home Loan Bank of Atlanta
This is not surprising.  GM/GMAC has been dealing with diminishing liquidity going back to the creation of Residential Capital Corporation in 2006.
October 13, 2008
It's the loans, not the deposits
Analysis of: Wells Fargo scuppers Citigroup's takeover of Wachovia | www.guardian.co.uk
Author: Joe Garrett, Principal Consultant, Garrett, Watts & Co
Sometimes you don't want to get what you've been hoping for.  Wachovia has a top deposit gathering franchise, and they clearly help complete much of the Wells Fargo footprint.
Douglas RossbachOctober 10, 2008
Mortgage Insurance .. Helped Today, Gone Tomorrow?
Analysis of: Rescue Sunday | online.wsj.com
Author: Douglas Rossbach, Partner, Rossbach Consulting
The mortgage insurance industry would appear to benefit from the latest government actions to inject liquidity into the credit markets and reduce foreclosures.  After all, anything that will stem the drop in housing prices and prop up the economy should reduce mortgage defaults and mortgage insurance...
September 30, 2008
Blame the models and Risk Based Pricing
Analysis of: Why Risk Models Failed to Spot the Credit Crisis by Adam Davidson | www.npr.org
Author: Joseph Smith, President & CEO, Default Mitigation Management
Models only cover certain variables and the crisis involved much more than mortgage pricing and a few macroeconomic issues. Risked based pricing as used in the mortgage industry had an underlying flaw that caused the models to fail. Greed played the other part.
September 22, 2008
How to fix the Economy (without it costing too much)
Analysis of: Will the Levee Break? An Ocean of Bad Debt Rises despite Fed Rescues | knowledge.wharton.upenn.edu
Author: James Butler, President, Rigley Financial Corporation
The recently proposed bailout was an inevitable solution to a ever-growing problem. The $800B will be the most costly endevour by the U.S. government since The New Deal proposal from the Great Depression. The key to the issue at-hand is two fold: first, the stabilization of the real estate prices....
John JukoskiSeptember 18, 2008
Be wary of synthetic markets
Analysis of: Leveraged Loan Risk Rises on Lehman Auction, LevX Index Shows | www.bloomberg.com
Author: John Jukoski, Former First VP & Director of Collateral Analysis, Federal Home Loan Bank of Atlanta
The analysis in this article is generally on point, but keep in mind this is a synthetic market.
September 17, 2008
Leverage thrills, but kills the sell-side institutions.
Analysis of: CLSA's Wood Sees Another $1 Trillion in Credit Losses | www.bloomberg.com
Author: GLG Expert Contributor
Underlying causes of the financial meltdown are discussed, with hints at the possible solution for the Fed/government.
September 12, 2008
What to expect from the bailout.
Analysis of: U.S. bails out Fannie Mae, Freddie Mac, ousts CEOs | www.bizjournals.com
Author: Joseph Smith, President & CEO, Default Mitigation Management
1. Shows how truly bad the mortgage industry has gotten and how scared the feds are of where we are going. 2. If the major source of liquidity can not survive, who will? 3. What should be the outcome.
September 11, 2008
GSE Takeover Will Not Materially Reduce Mortgage Interest Rates
Analysis of: Government GSE Takeover Could Reduce Cost of Mortgages | www.bigbuilderonline.com
Author: GLG Expert Contributor
The GSE takeover will not significantly reduce mortgage interest rates.  The GSEs will now be focused on propping up the U.S. economy--not on prudent lending and risk-based pricing.

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