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…
continue reading


Tags: , , , , , , , , , , , ,




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


continue reading


Tags: , , ,




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
continue reading


Tags: , , , , , , , , , , ,




 
 
 

Phil's Favorites

Consumer Bureau To Decide Who Owns Your Financial Data

 

Consumer Bureau To Decide Who Owns Your Financial Data

What Should Banks, Fintechs Be Allowed to Do With All that They Know About You?

Courtesy of Jillian S. Ambroz, DCReport

A federal agency is gearing up to make wide-ranging policy changes on consumers’ access to their financial data.

The Consumer Financial Protection Bureau (CFPB) is looking to implement the area of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act pertaining to a consumer’s rights to his or her own financial data. It is detailed in section 1033.

The agency has been ...



more from Ilene

Zero Hedge

Cali Mansion Once Listed For $100 Million Sells For "Only" $48.4 Million

Courtesy of ZeroHedge View original post here.

Today in "a look into a luxury real estate market you will never likely participate in" news...

A famous L.A. mansion called "Opus" that was once listed for $100 million and has been on the market for over three years has finally sold - at a more than 50% haircut.

The 20,000 square foot mansion sold for $48.4 million this week, furniture included, according to Bloomberg. It is also the lates...



more from Tyler

Politics

Mythmakers: The Men Who Created Donald J. Trump

 

Mythmakers: The Men Who Created Donald J. Trump

Mark Burnett, Jeff Zucker, and the Trustwashing of a Fake President

Courtesy of Greg Olear, Prevail, author of Dirty Rubles: An Introduction to Trump/Russia 

...

more from Politics

ValueWalk

Einhorn's Greenlight Capital Re And Icahn's Icahn Enterprises

By The Acquirer's Multiple. Originally published at ValueWalk.

During their recent episode of the VALUE: After Hours Podcast, Taylor, Brewster, and Carlisle discussed Einhorn‘s Greenlight Capital Re (NASDAQ:GLRE) and Icahn’s Icahn Enterprises LP (NASDAQ:IEP). Here’s an excerpt from the episode:

Q3 2020 hedge fund letters, conferences and more

Einhorn's Greenlight Capital Re And Icahn's Icahn Enterprises

Tobias: Einhorn genius for a decade. The GOAT for a decade, a GOAT for the last decade. I think it could be back to the GOAT stage, possibly for the...



more from ValueWalk

Biotech/COVID-19

Oxford-AstraZeneca vaccine is cheaper than Pfizer's and Moderna's and doesn't require supercold temperature

 

Oxford-AstraZeneca vaccine is cheaper than Pfizer's and Moderna's and doesn't require supercold temperature

Now there is a third possible vaccine for fighting the COVID-19 pandemic. Jakub Porzycki/NurPhoto via Getty Images

Courtesy of Sanjay Mishra, Vanderbilt University

The biopharmaceutical company AstraZeneca has released data on what is now the third promising vaccine candidate against COVID-19 – and it has several advantages over those of its competitors, ...



more from Biotech/COVID-19

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: Friday, 12 June 2020, 08:06:43 PM

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


Comment: Interesting (2)



Date Found: Saturday, 13 June 2020, 12:27:02 AM

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


Comment: Recession Forecasts Time Frame



Date Found: Monday, 15 June 2020, 11:07:52 PM

...

more from Chart School

Kimble Charting Solutions

Transports Sending Strong Bullish Message To Other Dow Indices?

Courtesy of Chris Kimble

Are Transportation stocks about to send a quality bullish message to other Dow indices this month? Sure could be!

This 3-pack looks at the Dow Jones Industrials, Transports, and Utilities indices on a monthly basis.

One week from the end of a month, the DJ Transports are attempting an important bullish breakout at (1). Unless a sharp reversal takes place in the next week, Transports could close out the month at new monthly closing highs!

The Dow is attempting to close at all-time highs this month, while the Dow Utilities Index remains a few percent below 2020 highs....



more from Kimble C.S.

Digital Currencies

Dalio Admits "I Might Be Missing Something" As Bitcoin Surges Above $18,000

Courtesy of ZeroHedge

Since the US election, Bitcoin prices (in USD) have surged a stunning 40%, also lurching higher after each vaccine headline hit.

Source: Bloomberg

Getting ever closer to its all-time record high...

Source: Bloomberg

As crypto prices soared overnight, Bridgewater Associates founder Ray Dalio stepped back into the fray, saying in a Twitter thread that “I might be missing something about Bitco...



more from Bitcoin

Mapping The Market

COVID-19 Forces More Than Half of Asset Management Firms to Accelerate Adoption of Digital Marketing Technology

By Jacob Wolinsky. Originally published at ValueWalk.

There is no doubt that the use of technology to support client engagement initiatives brings both opportunities and threats but this has been brought into sharp focus this year with the COVID-19 pandemic.

The crisis has brought to the fore the need for firms to enable flexibility in client engagement – the expectation that providers will communicate to clients on their terms, at their speed and frequency and on their preferred channels, is now a given. This is even more critical when clients are experiencing unparalleled anxiety from both market conditions and their own personal circumstances.

...

more from M.T.M.

The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



more from Tech. Traders

Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



more from Lee

Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

http://www.insidercow.com/ more from Insider

Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

...

more from Promotions





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...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.