Posts Tagged ‘GMAC’

Full Bore to the Vanishing Point

Full Bore to the Vanishing Point

By James Howard Kunstler 

Highway through desert in New Mexico

      Last evening at twilight I was driving my rent-a-car up Interstate Five north of Seattle with a vivid testicular fear of being trapped in the very metaphor of a failing society racing into a dark future. All around me loomed the monuments of an out-of-control financial credit Moloch – the tilt-up chain store boxes with their giant logos glowing against the distant craggy peaks of the Cascades (many of them active volcanoes which, like Mt. Saint Helens, might blow their tops any day). At every compass point sprawled the McHousing pods of American dream mortgage time-bombs silently blowing families to financial smithereens, and banks with them, including, incidentally last Friday, the state of Washington’s own Shoreline Bank just off I-5 north of Seattle, seized by the FDIC. My way was lighted, as darkness finally stole in, by the endlessly replicated dispensaries of fast food-dom (pizza-burgers-chicken-fries-and-shakes) provoking this nation of overfed clowns to ever-greater feats of gluttony, medical catastrophe, and bankruptcy. And, of course, these were my fellow-travelers in the perpetual stream of cars plying this great thoroughfare of the tragic western littoral, burning up gasoline that had traveled all the way from the sands of Abqaiq or from some sweltering platform off the Niger Delta, where dangerous, angry, armed men in Zodiac boats plot mayhem nearby among the mangrove thickets. Not to mention the row-upon-row of idle cars parked in the lagoons surrounding the countless malls and strip-malls and auto dealerships that flanked I-5 for fifty miles north of Seattle. Cars, cars, cars, as far as the eye could see where the sodium-vapor lamps cut through the crepuscular murk. Sasquatch was a no-show. But Sasquatch don’t drive.

      This was the week when the US housing fiasco got even more extra-special interesting as the Bank of America suspended mortgage foreclosures in twenty-three states, and the Connecticut Attorney General (Richard Blumenthal, who is running for Chris Dodd’s senate seat) declared a 60-day moratorium on foreclosures (a political ploy do ya think?). Also of interest, Ally Financial suspended foreclosures in twenty-three states – and note, by the way, that Ally is the mutant offspring of the bailed-out General Motors Acceptance Corporation (GMAC), which also spawned the infamous DiTech Mortgage finance company (remember those non-stop TV commercials a few years back) which specialized in jumbo…
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How Serious is the GMAC Problem? Pretty Serious and Not Just GMAC

How Serious is the GMAC Problem? Pretty Serious and Not Just GMAC

Courtesy of Yves Smith at Naked Capitalism 

ally foreclosure

The news reports on GMAC Mortgage’s decision to halt evictions and foreclosure sales in 23 states, as originally reported by Bloomberg News, has generated keen interest in the mortgage and securitizaion communities. One reason is the oddly abrupt and broad nature of GMAC Mortgage’s action. GMAC Mortgage subsequently issued a rebuttal of sorts to the article. Not only did it fail to clairify matters, it is inconsistent with the actual notice it sent last week.

Various accounts have described how one officer of GMAC Mortgage’s servicing unit has admitted during testimony that, while he signs thousands of affidavits each month in order to affect steps in the foreclosure process, he does not have personal knowledge of certain critical facts in the affidavit which he asserts to be true. Reader Stupendous Man provided the text of Federal Rule 56 on affidavits (although the cases in question are in state courts, the same principles no doubt apply). Boldface ours:

A supporting or opposing affidavit must be made on personal knowledge, set out facts that would be admissible in evidence, and show that the affiant is competent to testify on the matters stated.

The key here is you can’t delegate creating affidavits to parties who weren’t close to relevant matter out of administrative convenience; you need to find people who were directly involved. And evidence in a number of foreclosure suits indicates that this problem not only extends well beyond GMAC, and is not a matter of matter of officers providing affidavits based on a review of copies of the paperwork in a transaction. As one attorney wrote:

It is beyond people signing things when they don’t see the “originals” These people don’t see shit. We have depositions from these folks, the only thing they are able to verify on the documents is what title they are supposed to use, from the particular servicer they are working for – Executive Secretary, Executive Vice President, Asst. Sec., etc…..

So there is evidence to support the notion GMAC was not alone in providing cooked up affidavits. The only question is how widespread this practice was at other servicers.

What are the implications of the GMAC Mortgage actions and how serious are the problems? GMAC Mortgage and similarly situated parties


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Fa La La Friday – Scroogy Swap Prices Blacken Christmas

Where is our Santa Clause rally?

We usually have one.  Even last year the Dow went from 8,149 on Dec 1st to finish at 8,776 on Dec 31st.  This year, we're lower than we were on Thanksgiving and challenging the 10,200 line, the lowest we've been since Nov 9th.  Why has Santa Clause forsaken us?  Most likely, it's because we already got our Christmas present in November, when the Dow ran from 9,712 on the 2nd to 10,406 on the 16th.  That was when we threw in our bullish towel as it was way over our 2009 target (9,850), which is based on fundamental market valuations, rather than Christmas wishes.

We still face serious headwinds in the economy and, as I've said many times this year, the current market valuations are ignoring the risk factors of owning equities – an amazing thing considering how recently those risk factors showed up and bit people's faces off both last fall and this spring.  For example, according to the NYTimes this morningAmerican International Group, Fannie Mae, Freddie Mac and GMAC, are not only unable to repay the government, they are in need of continuing infusions that make them look increasingly like long-term wards of the state.  The total risk they pose to the taxpayer far exceeds that of the big banks. Fannie and Freddie, in the final days of the year, are even said to be negotiating with the Treasury about greatly expanding the money available to them.  

While some banks are repaying TARP funds, these wards of the state need MORE money or we are right back to the default risk that sent the market plunging last year.  What else sent the market plunging last year?  Oh yes, it was credit default swaps.  We still have many hundreds of Trillions of those nasty little suckers outstanding and now the cost of insuring sovereign debt against default in Europe is right back to where it was in March, when we thought the World was ending.  “It’s going to prove extraordinarily difficult for countries to cut back on budget deficits,” said Ciaran O’Hagan, a fixed-income strategist at Societe Generale SA in Paris. “Many countries are facing severe difficulties in coping with the economic downturn.”    

 

Credit-default swaps on Portugal’s debt
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Kimble Charting Solutions

Gold is Knocking on a Key Breakout Level

Courtesy of Chris Kimble.

For the past 5 years, Gold prices have traded sideways. There were plenty of “trades” to be made, but that type of price action tends to grind out long-term bulls and bears.

You can see this in today’s “monthly” closing chart for Gold (shown below).

Gold bulls caught a break recently when Gold broke out above its multi-year downtrend line at (1) and (2). This spurred a big advance in metals & mining stocks.

Can Gold bugs and bulls keep the momentum going? We should find out shortly.

Gold is currently knocking on a key breakout resistance level (3). A bullish message will be sent to bulls if Gold can breakout above the 2017 m...



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Phil's Favorites

Senator Bernie Sanders Should Be Taken Very Seriously as a Presidential Candidate

Courtesy of Pam Martens.

Presidential Candidate, Senator Bernie Sanders, Delivers a Major Policy Speech on Reforming Wall Street on January 5, 2016

On Tuesday, Senator Bernie Sanders of Vermont declared his candidacy to seek the Democratic nomination for President of the United States.

Wall Street On Parade endorsed Senator Sanders over Hillary Clinton in 2016 because Clinton was effectively running as Wall Street’s candidate and as Obama&#...



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Zero Hedge

Trump: "I Want 5G, Or Even 6G, Tech In The US As Soon As Possible"

Courtesy of ZeroHedge. View original post here.

President Trump has finally hit upon the real issue at the center of the US government's battle with Huawei: It's all about the technology. To wit, one reason why US allies and the UK and Germany have been so hesitant to cut ties with the Chinese telecoms giant is that, as its founder pointed out in a recent interview with Western media, there is no real alternative. US telecoms like Verizon still lag their Chinese rivals when it comes to 5G.

So, in a series of tweets sent Thursday morning, President Trump exclaimed that "I want 5G, and even 6G technology in the United States as soon as ...



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ValueWalk

Liquid Technology Clinches Bid To Dispose Theranos IT Assets

By Jacob Wolinsky. Originally published at ValueWalk.

Liquid Technology Provides Theranos With Post-Shutdown Equipment Processing and Recycling

Theranos [Public domain], via Wikimedia CommonsThe Company Spearheaded the Biotech Start-Up’s Task of Decommissioning and Reselling of Thousands of Unneeded IT Assets

Q4 hedge fund letters, conference, scoops etc

...

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Insider Scoop

Seaport Global Initiates Bullish Coverage On A Dozen Cannabis Stocks

Courtesy of Benzinga.

Seaport Global turned bullish on cannabis stocks Thursday, initiating coverage on a dozen names. However, some of the most popular U.S. cannabis stocks are not among the firm’s top picks.

The Analyst

Seaport Global analyst Brett Hundley initiated coverage of the following cannabis stocks with Buy ratings:

  • Aphria Inc (NYSE: APHA), $18 target.
  • Hexo Corp...


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Chart School

RTT browsing latest..

Courtesy of Read the Ticker.

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Thursday, 02 August 2018, 07:48:20 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: $600 BN interest payments for US gov, print baby print



Date Found: Sunday, 05 August 2018, 09:22:26 PM

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Comment: Hire FED interest rates always brings double trouble



Date Found: Monday, 06 August ...

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Digital Currencies

Cryptos Are Surging: Bitcoin, Ethereum Hit One-Month Highs As Institutions Dip Toes

Courtesy of Zero Hedge

Cryptocurrencies are surging while the US equity markets take the day off. Ethereum is up over 18% from Friday's 'close' and the rest of the crypto space is a sea of green. While no immediate catalyst (headline or technical level) is clear, increasing chatter over institutional investors dipping their toes in the space have prompted an extension of the positive trend.

A sea of green...

Source: Coin360

Ethereum is leading the charge follow...



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Biotech

Cancer: new DNA sequencing technique analyses tumours cell by cell to fight disease

Reminder: We are available to chat with Members, comments are found below each post.

 

Cancer: new DNA sequencing technique analyses tumours cell by cell to fight disease

Illustration of acute lymphoblastic leukaemia, showing lymphoblasts in blood. Kateryna Kon/Shutterstock

Courtesy of Alba Rodriguez-Meira, University of Oxford and Adam Mead, University of Oxford

...

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Members' Corner

Why Trump Can't Learn

 

Bill Eddy (lawyer, therapist, author) predicted Trump's chaotic presidency based on his high-conflict personality, which was evident years ago. This post, written in 2017, references a prescient article Bill wrote before Trump even became president, 5 Reasons Trump Can’t Learn. ~ Ilene 

Why Trump Can’t Learn

Donald Trump by Gage Skidmore (...



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Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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