All GLG News Analyses Filed Under: Mortgages, Consumer & Specialty Finance

The USA Today article covers at some length the myriad of regulatory entities that touch mortgage lending. However, this mish-mash approach to regulation does not cover the causes that have lead to the subprime pains are generating a high number of delinquencies and foreclosures among lower income borrowers....

The referred news  item shows  that  monetary authorities like the US  Federal Reserve are attempting to downplay  the  effects of  the  subprime mortgage crises.  This analysis takes a look  at  the  subprime mortgage  crises and ...

  When regulators blink on the job, markets take the hit. As global markets become increasingly volatile, risk aversion has undermined investors’ overall confidence.

1) Media impact on regulatory agencies2) Misinformation regarding broker/lender culpability3) Clarification of subprime benefits4) The subprime implosion is way overblown

The subprime washout is a signal opportunity for the discriminating to buy assets.

This article is important because it contains a detailed and substantiated explanation of why the current problems with subprime lenders are an opportunity and why, despite the predicitions of just about every newspaper in the country, subprime loans are here to stay.

Hedge fund losers are going to begin appearing. The crisis atmosphere in the markets will spread further. But this asset class does have a downside valuation floor. Hard-core rigorous analysis is identifying major trading opportunities in the current crisis. The bigger longer term opportunity is already...

 Investors should not at all be shocked. When you peel back the curtain, the tightening of credit standards that New Century and others have been bragging about have been, essentially meaningless.

Yes, we will face the demise and break-up of dozens if not hundreds of sub-prime mortgage shops.Yes, we also will watch many prime mortgage originators suffer misfortune, dragged along by the foreclosure/buy-back non-performing loans that have plagued sub-prime lenders and servicers and the adverse...

HSBC’s decision to fire Bobby Mehta was a mistake; a classic wrong reaction. By recognizing the symbolism of the event, huge opportunity is signaled for investors.