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Johnny and Bambi Subprime


Countrywide and Indy mac announce layoffs, and this is about the 3rd inning...

In the last five years, the average US citizen with decent credit and a halfway consistent job was able to improve his income by the amount of debt incurred.

Aug. 9, 2006 - For the first time ever recorded, Americans owe more money than they make. Household debt levels have now surpassed household income by more than eight percent, reaching 108.4 percent in 2005, according to a May 2006 study by the Center for American Progress. Consumer debt is now at a record $2.17 trillion, reports the Federal Reserve Board and consumers cashed out a whopping $431 billion in home equity last year.

and an Exclusive word from Dr. Vladovich.

5.12% of total mortgages (45 million) are running late, and Foreclosure rates are 1.12%. When you see the Foreclosure rate hits about 2.5% look out. We should see this trend develop in the second quarter of 2008, when 780 billion dollars of mortgage resets will have occured. If the major mortgage banks have to foreclose and stop the process, market to market will kill the balance sheet further; its a no win situation. Off balance sheet chicanery will be forced to come clean at major public banks. Non-Depository institutions will be jeapordy.
1) Lack of capital
2) Goverment
3)Priced out of the market (rates will be higher).

"A complete extermination of mortgage brokers will occur"

(Dr. Vladovich, Sept 2007)

"One of the issues that hurt the ABX and MBS (and its truanches) ..was that trading desks representing the equity had no where to hedge or short against their own positions. There was no insurance policy to take out. These positions where created without a fire exit. Everyone assumed this things would pay out perfectly forever" Oscar Toscano

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