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August 13, 2008



So Fletch votes for, let it die. Fair enough, that was a choice. Now you have me thinking back to a time of local banks, 9 to 3 hours, less time consuming, more time living.........I'm going off to a peaceful place now.....


Not to be a wet rag on the positive mr. fixed-it vibe you are working but it doesn't look fixable to me. Has anyone asked that question yet? What if it is that bad and it's not fixable? Maybe it would be better to sweep the mess all into the dumpster, take the major pain now, and start over. Your maestro clown was wrong that real estate is local, at least over the past 6-7 years. But if you assume he stopped being capable of rational thought around 1957 then maybe he's not too far off. We going back boyz. Way back. Banks will take deposits and make loans. That's it. You want a mortgage, make a friend in your local bank, who will keep the mortgage & service it themselves. And if you are upside down, negative equity, etc - tough cookies. Spend some time to get to know your neighbor cuz you'll be in your house for a while. Suck it up, make your payments, and get off the entitlement mentality.

Ahhh, I feel better now. thks


For the conventional conforming loans, I think that Freddie and Fannie automated underwriting (I know Freddie is Loan Prospector, I forget Fannies) is a good tool. We have ample evidence of the improvements that need to be made, after it got gamed pretty good the last couple of years. I bet they are not beyond the means of any good underwriter and programer. Also, as a originator, you are now repping good to Uncle Sam. Harry Truman first made a name for himself by putting crooked defense contractors in jail in 1943. You knowing misrep you loans, jail time. We also have to come up with a huge improvement to Fair Issacs Co (FICO). Ratings companies, I think we have to go the way of Egan Jones...buyers pay for ratings. It will be expensive but if its done right, and I think Egan Jones is good..it will be worth it. The guys doing the ratings should get paid well and they feel more wedded to the customer doing the buying.


Solid plan to keep the secondary market humming. How do you regulate the originators to make sure they will guarantee high standards on their loans? With the ratings agencies credibility blown, how do re-instill confidence? How do you get them to separate themselves from the sell side?


when thain's sayin', i'm playin'!


Agreed Axel. The John Thain B.S. Enhanced Leverage Fund we will call it!


i tried to post something last night but i am away and bad internet here. but i also see this morning that mer may cut dividend for first time in 37 yrs. ust NOT as thain vowed last week. so i think a clear pattern has been set. thain, the "zig-zag" ceo says or swears to something and very soon thereafter he contradicts himself. (nicely, i'm calling this fredo a stone cold hoax and liar). so all you do is wait for him to make one of his ridiculous statements and bet against it 100%. you'll be a winner in a month at the most. nice tip. stay short, pony boy. stay golden and stayshort.

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