{"id":8620,"date":"2009-05-27T19:20:00","date_gmt":"2009-05-28T02:20:00","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=8620"},"modified":"2009-05-27T20:58:02","modified_gmt":"2009-05-28T03:58:02","slug":"what-happened-what-does-it-mean-and-where-do-we-go-from-here","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8620\/what-happened-what-does-it-mean-and-where-do-we-go-from-here\/","title":{"rendered":"What Happened, What Does it Mean, and Where Do We Go From Here?"},"content":{"rendered":"<p>Wow!&nbsp; What a day in the mortgage and bond markets today.&nbsp;&nbsp; I think it&#8217;s a good thing to say that while a lot of us saw this coming, very few of us expected that it would happen today.&nbsp;&nbsp;&nbsp; Let&#8217;s walk through what happened, what it means and where we go from here.<\/p>\n<p><b>What happened? <\/b>A couple of things happened that caused the bond market to go into a free fall (okay more than a couple):<\/p>\n<ul>\n<li>Several analysts and rating agencies have raised significant questions about whether both the United Kingdom and the United States will be able to continue to pay their debts as the staggering amounts that they are borrowing to keep their financial systems afloat are well, truly staggering.<\/li>\n<li>As GM inches\/races\/inches (depending on the moment) towards bankruptcy, it is becoming obvious that the US Government is going to have to shell out a LOT more money to keep GM somewhat afloat (another approximately $50,000,000,000 &#8211; but who&#8217;s counting?)<\/li>\n<li>Although the headline number looks good, as we discussed earlier, the <a href=\"http:\/\/straighttalkaboutmortgages.com\/2009\/05\/27\/existing-home-sales-for-april-2009\/\">existing home sales for April<\/a> were less than spectacular.<\/li>\n<li>Case Shiller came out with their housing price value reports and they showed a pretty nasty case of the housing price drops.&nbsp;&nbsp; That means that the collateral for mortgage backed securities is dropping in value making them less desirable.<\/li>\n<li>A number of reports have come out recently that showed that the performance of mortgage backed securities is continuing to suffer and mortgage delinquencies are continuing to rise.&nbsp;&nbsp; We talked about one of those reports <a href=\"http:\/\/straighttalkaboutmortgages.com\/2009\/05\/27\/why-mortgage-rates-wont-be-going-down\/\">here<\/a>, and another one of them <a target=\"_blank\" href=\"http:\/\/straighttalkaboutmortgages.com\/2009\/05\/26\/jobs-and-prime-mortgages-the-reason-this-wont-be-done-soon\/\">here.<\/a><\/li>\n<li>Oil prices have been going up and the people in OPEC who control a lot of that are talking $75 to $80 a barrel while we&#8217;re only at $63 right now.&nbsp;&nbsp; Increasing the risk of inflation puts pressure on rates.<\/li>\n<li>The Federal government, through their manipulation of the long term Treasury and mortgage backed securities markets (also known as buying the market), had been keeping mortgage rates artificially lower than what the economic, financial and mortgage portfolio conditions would typically warrant.<\/li>\n<li>Oh and there&#8217;s this little thing called North Korea firing test missiles and Iran running ships in <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8620\/what-happened-what-does-it-mean-and-where-do-we-go-from-here\/#more-8620\" class=\"more-link\">Read more<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Wow!&nbsp; What a day in the mortgage and bond markets today.&nbsp;&nbsp; I think it&#8217;s a good thing to say that while a lot of us saw this coming, very few of us expected that it would happen today.&nbsp;&nbsp;&nbsp; Let&#8217;s walk through what happened, what it means and where we go from here. What happened? A [&hellip;]<\/p>\n","protected":false},"author":44,"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":[62,29,26],"tags":[364],"class_list":{"0":"post-8620","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-dirty-laundry","7":"category-group-therapy","8":"category-lending","9":"tag-what-happened","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2535,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2535\/so-mr-buffet-gets-into-insuring-bondsthen-mr-ross-gallops-incoincidence\/","url_meta":{"origin":8620,"position":0},"title":"So Mr. Buffet Gets Into Insuring Bonds&#8230;Then Mr. Ross Gallops In&#8230;Coincidence?","author":"Jeff Brown","date":"January 24, 2008","format":false,"excerpt":"Recent events brought to mind an article published last week by one of my all time favorite Wall Street guys, Max Whitmore. In it Mr. Whitmore spoke of what's been called the PPT, or Plunge Protection Team. The short version says after the October 19, 1987 stock market crash, this\u2026","rel":"","context":"In &quot;General&quot;","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18093,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18093\/overnight-news-love-for-lease-how-badly-must-you-misunderstand-money-to-finance-a-dog\/","url_meta":{"origin":8620,"position":1},"title":"Overnight News: Love for lease? How badly must you misunderstand money to finance a\u00a0dog?","author":"Greg Swann","date":"May 1, 2021","format":false,"excerpt":"There really is a Crazy Linda, and she really does call herself that, and she really does go to the puppy store at the Arrowhead Mall every day. I can't imagine what the past year has done to her \u2013 not locked in, but locked out of much of her\u2026","rel":"","context":"In &quot;Group Therapy&quot;","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3365,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3365\/why-arent-the-dinosaurs-extinct-already\/","url_meta":{"origin":8620,"position":2},"title":"Why aren&#8217;t the Dinosaurs extinct already?","author":"John Rowles","date":"July 16, 2008","format":false,"excerpt":"In my last post, I made the case that many of today's old school brokers are Dead Dinosaurs Walking. In the last couple of days, two things have happened that have me questioning that theory and its keeping me up at night: I learned that a intelligent guy I know,\u2026","rel":"","context":"In &quot;Carnival of Real Estate&quot;","block_context":{"text":"Carnival of Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/carnival-of-real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14390,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14390\/what-might-have-happened-if-the-nar-had-not-caused-this-economic-downturn-we-dont-know-what-we-know-is-that-the-national-association-of-realtors-was-the-sine-qua-non-cause-of-the-great-recession\/","url_meta":{"origin":8620,"position":3},"title":"What might have happened if the NAR had not caused this economic downturn? We don&#8217;t know. What we know is that the National Association of Realtors was the sine qua non cause of the Great Recession.","author":"Greg Swann","date":"April 5, 2011","format":false,"excerpt":"This post is grown from a comment left by Brian Summerfield, editor of Realtor magazine. Before I begin, I want to commend Brian for daring to show up here to debate this topic. I think he's wrong, but the man has more guts than the people who pay him. Now\u2026","rel":"","context":"In &quot;Group Therapy&quot;","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4576,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4576\/what-happened-fannie-mae-and-freddie-mac-exploded-and-many-bystanders-were-injured-in-the-blast-some-fatally\/","url_meta":{"origin":8620,"position":4},"title":"What happened? &#8220;Fannie Mae and Freddie Mac exploded, and many bystanders were injured in the blast, some fatally&#8221;","author":"Greg Swann","date":"September 22, 2008","format":false,"excerpt":"Things fall apart: Kevin Hassett at Bloomberg.com is getting death threats over this news analysis:The financial crisis of the past year has provided a number of surprising twists and turns, and from Bear Stearns Cos. to American International Group Inc., ambiguity has been a big part of the story. Why\u2026","rel":"","context":"In &quot;Group Therapy&quot;","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17208,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17208\/overnight-news-what-else-happened-yesterday\/","url_meta":{"origin":8620,"position":5},"title":"Overnight News: What ELSE happened yesterday?","author":"Greg Swann","date":"September 30, 2020","format":false,"excerpt":"Catch any TV last night? Catch up on what you might have missed: Housing Wire: Home-price index gains the most since 2018. CTRL-F 'riot'; not found. Forbes: The Housing Market Inventory Shrinks While Home Prices Climb. CTRL-F 'riot'; not found. CNBC: Mortgage demand falls nearly 5%, even as interest rates\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8620","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\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=8620"}],"version-history":[{"count":3,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8620\/revisions"}],"predecessor-version":[{"id":8625,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8620\/revisions\/8625"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=8620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=8620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=8620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}