Adjustable Rate Mortgage Blog November Archive

Bailouts or No Bailouts

11/25/08 14:36

Basic knowledge of the ongoing financial crisis will show you that the root behind this mess are those banks specializing in the mortgage industry--so why are they receiving bailouts from the government? Why don't we just let them suffer for what they did, risking the economy for their profit? Now the whole world's in a crisis and there they are, getting bailouts.

Link: Reader comments on Option ARMs : HousingWire || financial news for the mortgage market

Treasure in Crisis

There are opportunities in the midst of economic crises. It's only a matter of searching for these opportunities.

One such investor with a keen eye for these details is John Paulson, a hedge fund manager who generated sixfold returns last year through bets against subprime mortgages. Now he's buying distressed securities.

Link: Bloomberg.com: U.S.

Wachovia Corp. makes record quarterly loss

Florida's largest bank has just received its largest quarterly loss in its history. Wachovia Corp. announced that it lost around $24 billion last quarter, dwarfing the $14 billion stake that Wells Fargo is using to buy the said bank.

In this case, the bank might have to resort to goodwill impairment with Wells Fargo to continue with the merger. More details here from TampaBay.com

Link: Wachovia Corp. posts $24-billion quarterly loss - St. Petersburg Times

Is the Bailout Already Trickling Down?

Most US citizens are not in favor of the recent US bailout plan executed for obvious reasons that the money to be used is the taxpayer's money. However, the bailout is serving its purpose of saving the US economy from further falling apart.

Some say that the bailout is now trickling down the normal houseowner. Is it true? We can only debate about it.

Link: At Last: Bailout Trickling Down to Struggling Homeowners