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

Douglas RossbachPartnerRossbach Consulting

Mortgage Insurance .. Helped Today, Gone Tomorrow?

October 10, 2008

Analysis of:Rescue Sunday | online.wsj.com

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 claims.  Moreover the industry should benefit from more cautious underwriting and improved pricing.  Assuming the mortgage insurers survive the current credit crisis, things should be rosy right?  Wrong. It is unclear what value the mortgage insurers bring to the emerging mortgage market now that Fannie and Freddie are government owned and the industry is moving toward plain vanilla, prime product.  In this future, credit risks are well understood and easily priced.  Fannie and Freddie no longer need a downgraded counterparty to share the risk, and the banks which will control most new lending will want to hold on to all the profit margins that they can.

Proposal: Use of $700B Bailut Funds

October 7, 2008

Analysis by: GLG Expert Contributor

Analysis of:The Trickle-Up Bailout | www.washingtonpost.com

The idea that the currently debated $700B Bailout Proposal will benefit Main Street is preposterous in its current state.  To assume that by giving the same culprits access to increased capital to stimulate the economy is ludicrous at best. We as the American Consumer must say shame on you do me once, shame on me do me twice. It is critical that we demand that this $700B create real opportunities for consumers and Homebuyers to get back on their feet and improve their financial standing.  It is clear as financial institutions continue to merge and buy up assets of other struggling institutions that their financial soundness is fine, they just don't want to lend to the average American, their is no profit in it now.

$700 Billion Bailout Attacks The Symptoms Not The Cause

October 3, 2008

Analysis by: GLG Expert Contributor

Analysis of:The Trickle-Up Bailout | www.washingtonpost.com

$700 Billion spent buying worthless derivative securities is far more costly and less sure of success than simply fixing the mass of defaulted mortgages. The Elected representatives of The People of the US should manage the economy to achieve the greatest good for the greatest number. So far the proposals of the Executive and Legislative branch have focused only on the good of financial institutions and their leaders to the exclusion of the good of The People.

Business Decision Quality: Transparent Only During Competitive Turmoil

September 30, 2008

Analysis by: GLG Expert Contributor

Analysis of:WaMu Becomes Biggest Bank to Fail In US History | news.yahoo.com

1. Talent:  Assets #1 in the industry, but not its Talent Portfolio; and,  2. Client Segmentation:  Sufficient modeling for the good times, lethal during challenging times.

Good News about Economy Crisis of the Century

September 29, 2008

Analysis by: GLG Expert Contributor

Analysis of:Will future historians write about the Great Depression of the 2000s as they did about the one in the 1930s? | www.iht.com

Actual financial shock of the Wall Street will initially have bigger impact on Asia and Europe then on US itself, but on the long run it might set back the US economy to stagnation that could last 10-15 years. Nevertheless, there's still a place for good news and hope in this situation.

Kamala WorthingtonPresidentKW Marketing Consultant

WAMU CLOSED: SOLD TO JP MORGAN CHASE FOR $1.9 BILLION

September 29, 2008

Analysis of:WaMu Becomes Biggest Bank to Fail In US History | news.yahoo.com

Rumors had been swirling over the last few weeks that WAMU was shopping for a buyer, however, the OTS (the Office of Thrift Supervision) couldn't allow WAMU to continue its operations under constraints of deposit outflows exceeding $16 billion in the last week or so and JP Morgan Chase becomes the benefactor of WAMU's collapse and acquires WAMU's deposits for a low ball amount of $1.9 billion. WAMU may have staved off a collapse if the proposed $700 billion bailout plan had been approved, however, what we witnessed this week was alot of grandstanding and political posturing but no agreement to pass and legislate the proposed $700 billion bailout plan. WAMU becomes the latest news headline and the largest FDIC-insured institution on the list of bank failures in 2008. The FDIC fund wasn't impacted by WAMU's collapse, however, other S&L's and thrifts that have failed to meet their fiduciary responsibilities have only added to the downward spiral of the U.S. economy. 

Harnath SithamrajuConsultantHarnath Sithamraju

Bankers need to change their attitude

September 29, 2008

Analysis of:WaMu Becomes Biggest Bank to Fail In US History | news.yahoo.com

1. Current crisis is the child of greedy bankers. 2. Fast loans are not criteria for high bonus.

Michael LynchConsultantMichael E. Lynch

J.P. Morgan, Goldman Sachs may survive. Others may not.

September 22, 2008

Analysis of:Will future historians write about the Great Depression of the 2000s as they did about the one in the 1930s? | www.iht.com

Carter Dougherty in Frankfurt, in the September 19 issue of the International Herald Tribune, asked rhetorically if future historians will write about the Great Depression of the 2000s.the world’s central bankers are flooding the international financial system with liquidity on the amount $180 billion hoping the answer to the question will be “no.” This contrasts to the inaction of the U.S. Federal Reserve in the 1930s. The Fed stood idly by as the banking system in the U.S. collapsed. Today, central bankers, acting in coordination, are taking a different approach. Benjamin Strong, visionary chairman of the Fed in the 1920s, foresaw the crisis and appreciated its global ramifications. But he died in 1928 too soon to exert influence. His scenario became reality in 1933 when the Austrian bank, Creditanstalt failed, pulling Europe into the abyss. Now, banks must raise additional capital at a time when little exists. They are acting like fortresses under siege.

How to fix the Economy (without it costing too much)

September 22, 2008

Analysis by: GLG Expert Contributor

Analysis of:Will the Levee Break? An Ocean of Bad Debt Rises despite Fed Rescues | knowledge.wharton.upenn.edu

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. Second is the rising (and continuation of) delinquencies and foreclosures. The pain HAS to be shared by the U.S. taxpayer AND the investing community. Here's a solution.

Robert CanterPresident-FounderPerformance Realty Solutions, LLC

All the King’s horses and all the King’s men couldn’t put Humpy Dumpy back together again

September 19, 2008

Analysis of:Will the Levee Break? An Ocean of Bad Debt Rises despite Fed Rescues | knowledge.wharton.upenn.edu

The key implications are too numerous to cover in this space. To many of us its apparent that we are on the verge of a major economic meltdown the likes of which haven’t been seen since the Great Depression. The one major implication will be greater rules and regulations that the free market folks will dread, but they have themselves to blame along with all the King’s merry henchmen. This article spreads the blame from the feet of Alan Greenspan to the CEO’s of the major Wall St. banks that allowed greed to take the place of wise and intelligent investing.

Previous Page : 45678910111213Next81 to 90 of 394