Central Bank Lending
Demand still strong for Central Bank Lending
(Dow Jones) Banks continue to have a healthy thirst for funding, as new longer-dated dollar-denominated auctions by the Fed, the ECB and the Swiss National Bank received strong interest, Real Time Economics notes. The $25B 84-day TAF offered by the Fed drew $54.8B of bids from 64 banks. A total of 57 banks bid $38.52B for $10B offered by the ECB in 84-day funds, while 15 participants bid $9.8B for the SNB's $2B auction. "The TAF is indicating that there's more severe credit problems out there," says Tom di Galoma, managing director and head of Treasurys at Jefferies. "The banking sector just can't get one foot in front of the other."
#1 Sant så. Men har du tittat på snittbelåningen i husbeståndet? Där finns mkt mer att ta av innan det är överbelånat rakt över.
Men marginaleffekten kan påverka sett på 1-2 år till såklart.
#0 En åtgärd som avhjälper effekterna av likviditetskrisen mer än alla räntesänkningar. Lär nog utökas också vad det lider.
|StRY| "Caveat emptor. Buyer beware."
#2 Japp, det är nog tur att de kör de här åtgärderna. Samtidigt som det visar på att det verkligen finns problem så kan de ju inte bara stå bredvid och titta på.
If the "subprime crisis" was about "exotic securities," the "Alt-A crisis" is going to be about bank balance sheets. And the fun is only beginning.
Alt-A; the new subprime. Or "We?re all subprime now!"
There is some evidence that subprime defaults have peaked, but Alt-A defaults are picking up steam (Tanta will have more today). The next wave is here, and these defaults will impact house prices in the mid-to-high range.
According to Clayton, subprime delinquencies appear to have peaked in December of 2007, and subprime foreclosure starts may have peaked in January of 2008. The volume of foreclosures in process will remain elevated for a long time as these things work their way through lengthy foreclosure timelines, but the peak in FC starts is good news.
Unfortunately, Alt-A seems nowhere near its peak yet. Clayton's report, based on May data, indicates that both new delinquencies and foreclosure starts in Alt-A pools are still rising. Fannie Mae's recent conference call suggesting that Alt-A deteriorated even more sharply in July is yet more evidence that the Alt-A mess is still ramping up.
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Countrywide Financial Corp said thousands of borrowers with $25.4 billion in option adjustable-rate mortgages (ARMs) owe almost as much as their homes are worth ...
Another sign of borrower distress: One in eight is at least 90 days late on payments.
As of June 30, the typical borrower owed 95 percent of the value of his home, up from 76 percent when the loan was made ...
Seventy-two percent of borrowers were making less than full interest payments, and 12.4 percent were at least 90 days delinquent
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Skolboksexempel. Teorin stämmer (Elliot wave..). Läste att 45 % av alla som köpt hus i USA från 2006 ligger på minus. Många har lån som överstiger värdet på huset. Vad händer då med konsumtionen? Vad händer då med försäljningen och vinsterna? Ser inte bra ut framöver.