The end of debt as we know it

[Got Goldies]

http://sp1.mm-a5.yimg.com/image/3253445583

Subprime `Tsunami' Hits Asset-Backed Commercial Paper Market

Aug. 8 (Bloomberg) -- Companies are extending payments on commercial paper backed by home loans for the first time as the subprime mortgage crisis spreads to debt perceived to be among the safest in the market, according to Moody's Investors Service.

Units of American Home Mortgage Investment Corp., the residential-mortgage lender that filed for bankruptcy, Luminent Mortgage Capital Inc., facing margin calls from lenders, and Aladdin Capital Management LLC, this week exercised an option allowing them to delay repaying the debt, Moody's said.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a.98mgnTI5s4

[Hi Ho]

everybody seems to be extending temporary measures and terms so that they don't have to report just how underwater they really are.

It's like the music has stopped in the game of musical chairs and everybody is still humming the tune.

What are they waiting for?
Could it be they are all waiting for the "big event" to blame it on?

[Got Goldies]

I was a bit worried about this article because it mentions Money Market. I have some cash in one, interest rate is nice, but isn't it suppose to be safer than DOW?

[DBcooper]

Anyone here read "the end of work"
Why should unproductive people work if they want a minimal check just to sustain themselves so be it i say,but they should forfeit certain things like rights to carry weapons,procreate etc.

[Got Goldies]

Any comments on Money Market having problems somebody make a comment. Are these Money Markets diversified enough? The opening title says crisis spreads to the safest debt in the world. . . 'Short term Money Markets'.

I need to know because i do hold some greenbacks. And may as well get some interest for it. Greenbacks to me have more risk than anything out there. But what can happen to Money Market is what I need to know.

[DBcooper]

Cash cash cash,moneymarkets your getting what 3 to 5% if that and your money is just sitting there stagnant,buy some gold or hold hard cash and watch for assests later ,people will want any dollars soon.

[Got Goldies]

I'm getting like close to 5%.

But I'm not sure what they mean by crisis is spreading to money markets. I suppose they're herding people out so they can pump economy. But I need to earn some interest.

[DBcooper]

If its les than say a 100k just throw into a savings then atleast you pay no penalty,dont buy those TIPS i know alotta people are suggesting those but dont.
But hey you could always buy utilities local ones pay divedneds they are always a safe bet.

[Got Goldies]

Mine is in a penalty free money market. And its nothing to get excited about. Its just parked money incase cde goes below $3.50.

[jon_e_og]

Any comments on Money Market having problems somebody make a comment

yes, some are.. I saw somewhere that AXA financial had taken hits on some of their funds and rumors are all over about who's holding the bag

depends on what they are invested in, check w/ the individual financial institutions

- jon

[DBcooper]

Over the years many funds used a safe bet for a short gain buying insurance stocks prior to earnings,it goes along the same lines if you wish to hit say energy stocks these days.

[randymatt]

Cash cash cash,moneymarkets your getting what 3 to 5% if that and your money is just sitting there stagnant,buy some gold or hold hard cash and watch for assests later ,people will want any dollars soon.

Right DB, cooking oil, canned butter, canned anything, nickels, PMs, 22LR, TP, water filters.....

[Got Goldies]

yes, some are.. I saw somewhere that AXA financial had taken hits on some of their funds and rumors are all over about who's holding the bag

depends on what they are invested in, check w/ the individual financial institutions

- jon

I checked the prospectus.....short term goobermint debt, corporate debt, fannie, ginnie, probably foreign currency, too.... CD, etc, etc. but I dont see subprime.

[DBcooper]

Heh doesnt matter AHM wasnt subprime and they are done.
You see the notes that the market has sold is inflated alot,well very alot.
Its Prime,Sub Prime etc doesnt matter.

[DBcooper]

You hear on the news its ohh 2 million people will lose homes maybe three,no its around 7 million or more just watch.

[Got Goldies]

Its probably time to seize assets, then. Money Markets hold the title to something.

There is no way Money Markets are going to go away. if it does we're talking about the mother of all paper dollar crashes. And I'm shielded.

[platinumdude]

I think tips are safer than some money markets.

[Horn]

Cash cash cash,moneymarkets your getting what 3 to 5% if that and your money is just sitting there stagnant,buy some gold or hold hard cash and watch for assests later ,people will want any dollars soon.

Does this include the NAU ones?

[Got Goldies]

I dont understand these money markets but at least interest rates will skyrocket if any perceived problems. Betcha money market rate goes to 10% and 30 year is still 6%.

The conundrum Greenspan worried about.

[jon_e_og]

Heh doesnt matter AHM wasnt subprime and they are done.

the really scary thing is that the media is telling us that AHM was big in Alt-A , and thats basically subrpime

BUT, a few months ago when spreads started to pop and AHM started to drop the company put out info on their portfolio...

as far as I remember only %10 was Alt-A , no subprime(maybe a fraction of %1), an average FICO in the mid to upper 600's (i think), and a good chunk of them had mortgage insurance...

they did deal in alot of exotic products; option/arms, 2-28's etc but they were a middle credit quality player, and a big one at that. This is proof that this has significantly rolled up the credit spectrum.

when countrwide announced they had "ample liquidity" last weak the signal went off that the #1 lender could have some major issuess

btw, has anyone noticed how this worsening mess seems to have fixed itself overnight according to the pundits and commentators? Amazing!

- jon

[DogFarm]

I don't know, I kind of liked the days of a 115% debt financing :s9: