And the beat goes on…\u00a0 but sometimes it helps\u00a0to have that little bouncing ball show us\u00a0exactly what lyric we are singing this week.\u00a0 All together now:<\/p>\n
Today the Fed suprised no one by\u00a0opening the discount window to ailing siblings: Fannie Mae and Freddie Mac.\u00a0 Together they\u00a0hold more\u00a0than half of all mortgages in the US and the guarantee that they would not fail has been implied for some time.\u00a0 The Fed also intimated there would be no other bail outs in the foreseeable future.\u00a0 Who is walking the thin line?\u00a0 WaMu, Wachovia, Downey, Indy Mac<\/span> (oops, they were written out of the chorus last week).\u00a0 Now it looks as if\u00a0the Fed has\u00a0reworked a few more lines and their song to the\u00a0Wall Street firms\u00a0goes a little something\u00a0like this: if you can not fix your problem with\u00a0the ability to borrow at 2.25%, your problem is not fixable.<\/p>\n This does not bode well for our short list.\u00a0 Downey is more of a regional and will likely go down under its own weight of Losses<\/em> and Lawsuits<\/em> (the real<\/strong>\u00a0“L” words).\u00a0 Previous posts right here on BHB <\/a>have fixed WaMu as the consensus “next big one” to fall.\u00a0 Wachovia, in my opinion, is more of a question mark.\u00a0 Straight-laced, tea-loving bank goes to a frat party where “everyone\u00a0who is anyone” is drinking and the peer pressure just becomes too much.\u00a0 This is a hangover for which they are ill prepared.<\/p>\n What does this mean for real estate and the mortgages that drive its cycles?\u00a0 Here’s one thought: if you are a specialist in homes that do not play the\u00a0Fannie\/Freddie tune, you may want to create some\u00a0more income streams and fast.\u00a0 Any regional that has not already eviscerated it’s “improvisational jazz” lending will\u00a0find themselves looking at a Wall Street that no longer believes anyone is above failing.\u00a0 If recent history has taught us anything it is this:\u00a0the big\u00a0firms currently involved in lending are either asleep at the wheel or lying outright.\u00a0 We watched Counrywide lie about their financials right up until the end.\u00a0 We watched WaMu take hits twice their predictions.\u00a0 Even Wachovia, a stalwart bank, was “surprised” by losses more <\/a>Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" And the beat goes on…\u00a0 but sometimes it helps\u00a0to have that little bouncing ball show us\u00a0exactly what lyric we are singing this week.\u00a0 All together now: Today the Fed suprised no one by\u00a0opening the discount window to ailing siblings: Fannie Mae and Freddie Mac.\u00a0 Together they\u00a0hold more\u00a0than half of all mortgages in the US and […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-3355","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4669,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4669\/the-mortgage-dance-continues\/","url_meta":{"origin":3355,"position":0},"title":"The Mortgage Dance Continues","author":"Sean Purcell","date":"September 26, 2008","format":false,"excerpt":"I posted the following back in July and with WaMu going down it seems like a good time to bring it back to the top.\u00a0 If there is any confusion as to who is going down and why, make a point of clicking the link on the \"accounting debacle\".\u00a0 It\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10486,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10486\/a-disaster-for-democrats-yeah-but-what-about-the-rest\/","url_meta":{"origin":3355,"position":1},"title":"A Disaster for Democrats? Yeah, but what about the rest?","author":"Tom Vanderwell","date":"December 3, 2009","format":false,"excerpt":"This is just ugly.....Let me attempt to explain.\u00a0\u00a0 Goldman Sachs came out with their economic forecast.\u00a0\u00a0 Here's a brief summary of it:Mediocre growth until late 2011.Unemployment peaking at 10 3\/4 in the middle of 2011.Extremely low inflation through 2011Low interest rates through 2011 (at least the ones the Fed controls.)So,\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":982,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/982\/peeking-into-bernankes-crystal-ball\/","url_meta":{"origin":3355,"position":2},"title":"Peeking into Bernanke’s Crystal Ball","author":"Brian Brady","date":"February 2, 2007","format":false,"excerpt":"Do you want to look into the crystal ball through the eyes of Federal Reserve Chairman, Ben Bernanke? Will that help you predict mortgage rates and housing prices for 2007? I try to outguess the Fed all the time and I've decided that we'll see a significant decline in short-term\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8979,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8979\/the-fed-translated-7\/","url_meta":{"origin":3355,"position":3},"title":"The Fed Translated…..","author":"Tom Vanderwell","date":"June 24, 2009","format":false,"excerpt":"In keeping with my practice of translating the Fed's statements, here goes this one:\"Move along, keep moving, nothing to see here folks!\u00a0\u00a0 Business as usual!\"They didn't do a thing to address the bond market concerns or to allow that things are changing at all.\u00a0\u00a0 Expect mortgage rates to drift up\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2708,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2708\/the-beat-goes-onand-the-beat-goes-on\/","url_meta":{"origin":3355,"position":4},"title":"The Beat Goes On…and The Beat Goes On","author":"Brian Brady","date":"March 6, 2008","format":false,"excerpt":"The Fed reported that home equity is at its lowest since World War Two: Homeowners' portion of equity slipped to downwardly revised 49.6 percent in the second quarter of 2007, the central bank reported in its quarterly U.S. Flow of Funds Accounts, and declined further to 47.9 percent in the\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3813,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3813\/mortgage-market-week-in-review-5\/","url_meta":{"origin":3355,"position":5},"title":"Mortgage Market Week in Review","author":"Tom Vanderwell","date":"August 8, 2008","format":false,"excerpt":"So, it\u2019s Friday again and what has this week been like for the mortgage world? Well, it\u2019s certainly not been boring, that\u2019s for sure! We\u2019re going to talk about six different things in today\u2019s Mortgage Market Week in Review: Freddie Mac - They started the week\u2019s major news by announcing\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=3355"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3355\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=3355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=3355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=3355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}