For those of you who missed 60 minutes last night, they did a 13 minute segment on Paul Bishop a whistle blower at World Savings Bank (which was Golden West Financial's bank subsidiary) who tried to alert bank management to the risks associated with the Pick-a-Payment Option ARM mortgages.
Wachovia bought out the bank near the peak of the market at $25 billion
"World of Trouble" (13 minutes)
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Showing posts with label 60 minutes. Show all posts
Showing posts with label 60 minutes. Show all posts
Monday, February 16, 2009
Sunday, December 21, 2008
Alt A and Option ARM resets to trigger next wave of foreclosures
Last night 60 Minutes had a very interesting story about how a second wave of defaults will hit the housing market. The first wave of course, has been the sub-prime loans that have gone bad. The second wave will consist of Alt-A loans and Option-ARM loans.
This potential wave of future resets in Alt-A and Option ARMs, according to Credit Suisse really begins in 2009, ramps up in 2010, and ramps up again in 2011.
These resets, coupled with increasing unemployment rates, in my opinion will continue to hold-down real estate values for the next several years.
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This potential wave of future resets in Alt-A and Option ARMs, according to Credit Suisse really begins in 2009, ramps up in 2010, and ramps up again in 2011.
These resets, coupled with increasing unemployment rates, in my opinion will continue to hold-down real estate values for the next several years.
Watch CBS Videos Online
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