Waiting for the Other Shoe to Drop
August 26, 2008 4:30pm by Barry Ritholtz
This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client. References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers Please see disclosures here: https://ritholtzwealth.com/blog-disclosures/
What's been said:
Discussions found on the web:Posted Under
Previous Post
Loan Performance House Price IndexNext Post
I.O.U.S.A – A Nation in Debt
I just read an article where mortgage fraud was up 42% in Q1, YOY. I wonder how much of that ended up on FNM & FRE balance sheets. With them in the condition their in and all….
Surprise! Income Rises (In 2006 from 2000)
I’m surprised you did not debunk this NYT article. Something is fishy here. AGI rose as wages stagnated? How? Cap gains?… LimIdiot is touting this article as proof of a GREAT BUSH Economy. AGI rose while wages stagnated….means lower middle to lower incomes saw wages decline/stagnate as upper income increased income due to investment gains..Lower income people have little to no investments, thus no gains….
Really, economic crashed happen when all the money in the system has risen to the top, bu t the wealthy capitalist keep mass producing goods for the masses to buy. But the masses have no liquidity to purchase these goods leading to deflation in the longer term. Econ inequality leads to economic/social destruction/instability… This needs to be fixed…. Is the Ave. Joe to enjoy the crumb of the rich? Trickle down economic?
$$$$ Sheik
Here’s a teeny-tiny shoe in comparison, but a shoe nevertheless…..
http://www.thestreet.com/story/10434750/1/large-homebuilder-may-be-near-bankruptcy.html?puc=newshome
heh! That’s a nice one.
Barry, I think you should add “cartoon” as one of your category taglines.
Tuesday Evening – 7:49PM EST
God, I miss the Olympics!! It certainly was nice while it lasted.
I’m sorry, let me clarify….Don Luskin is a fucking asshole!!
Sorry for the confusion.
BG,
i like you style….chuckle
$$$ Sheik
Dennis Kucinich at the DNC: Wake Up America!
http://www.youtube.com/watch?v=C4EN7ibO1ec
Not a big fan but Congressman Dennis Kucinich was just on the stage and boy was he hitting it out of the ballpark !
Looking good for me bought Fannie 3 days ago and sold $5 option @ $6.20. That sucker might even get into the money, lol, lucky for whomever is holding em.
Gov’t not likely to let FNM and FRE go down to nothing. Too many other banks and financials are already in trouble.
It fits the definition of systemic risk.
Fannie won’t fail…Pesek is probably right.
http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_pesek&sid=aqu59cnYfsFY
Asia is About to Give the US a Kick in the Fannie…William Pesek.
Bruce In Tennessee
Sorta’ like livin’ in the late ’50s to the mid ’60s waitin’ for the times to change. Now I’m hearin’ a Presidential candidate’s wife give a speech where she sounds like a cross between the mothers on the TV shows “Father Knows Best” and “Leave It to Beaver”. Nowadays a political convention is just another TV show. Phraudy and Phony are signs of the times. That smug little view of home in America is gonna’ change due to how homes have been financed, tax advantaged, leveraged by financial institution alchemy, subject to distortion by political lobbying, and political cronyism by Democrats. A whole lotta’ shoes’ gonna’ drop here!
well now sanjosie you should have listened to Mark Warner who was very smart with powerful messages on what the US needs to become and soon or else risk falling further behind the rest of the world.
Perhaps this would have vectored you out of your time warp ;)
What will happen to Fakie and Fruadie if the government nationalizes them? Will rates come down? I think this is the next big shoe to drop on the housing market, large interest rates. This would keep even more buyers away.
km – I listened to Warner. Can’t anyone give a political speech anymore? Too much talking about “me”. Seems like he didn’t know where he was. The Happy Warrior, Hubert H. Humphrey, could deliver a barn burner of a political speech. Surprisingly, Hillary delivered a “real” political speech. If she’d done that from the start of the campaign the outcome would have been different.
Too bad McCain is so out to lunch on the economy.
Whoever is elected faces a tough slog, history will likely find little good to say. Too bad for us all.
Fannie and Freddie fall not only on the housing market in the cartoon, they fall on the entire financial system.
why didn’t we listen to barney frank back in 03. he was right on the money as usual
With foreclosure rates on the rise, it’s sad how incredibly apt this cartoon is.