{"id":197288,"date":"2008-02-15T18:24:00","date_gmt":"2008-02-15T23:24:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/02\/15\/economics-update-real-estate-edition\/"},"modified":"2008-02-15T18:24:00","modified_gmt":"2008-02-15T23:24:00","slug":"economics-update-real-estate-edition","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/02\/15\/economics-update-real-estate-edition\/","title":{"rendered":"Economics Update: Real Estate Edition"},"content":{"rendered":"<p>Swiss banking giant UBS is looking at a <a href=\"http:\/\/www.cnbc.com\/id\/23140424\">$26.6 billion exposure to toxic mortgates<\/a>, in <span style=\"font-weight: bold;\">addition<\/span> to whatever hit that they might take on subprime, so these are A and alt-A mortgages.  It reported a loss of $11 billion in Q4.<\/p>\n<p>In the Dallas-Ft. Worth Metroplex, <a href=\"http:\/\/www.dallasnews.com\/sharedcontent\/dws\/bus\/stories\/DN-foreclose_15bus.ART0.State.Edition1.38b1a3e.html\">foreclosure postings are up 27%<\/a>, effecting 13,000+ residences, an all time record.  The scary quote is, &#8220;Out of the homes posted, at least 20 percent are underwater and probably more&#8221; .<\/p>\n<p>And everyone&#8217;s favorite subprime whipping boy, Countrywide Financial, has had <a href=\"http:\/\/money.cnn.com\/2008\/02\/15\/news\/companies\/bc.countrywide.volume.ap\/index.htm\">delinquencies rise to 7.47%<\/a>.  That&#8217;s about one out of every 14 loans that is delinquent, which is clearly unsustainable.<\/p>\n<p>If banks had to consider this rate of delinquencies as a normal cost of business, mortgage rates would probably be in excess of 12% just to break even.<\/p>\n<p>It now looks like Royal Bank of Scotland is the <a href=\"http:\/\/money.cnn.com\/2008\/02\/14\/news\/companies\/mclean_rbs.fortune\/index.htm?postversion=2008021507\">latest institution in line to see significant losses from mortgage backed securities<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Swiss banking giant UBS is looking at a $26.6 billion exposure to toxic mortgates, in addition to whatever hit that they might take on subprime, so these are A and alt-A mortgages. It reported a loss of $11 billion in Q4. In the Dallas-Ft. Worth Metroplex, foreclosure postings are up 27%, effecting 13,000+ residences, an &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,973,1004,1265,1088],"tags":[],"class_list":["post-197288","post","type-post","status-publish","format-standard","hentry","category-bubble","category-economy","category-finance","category-housing-crash","category-real-estate"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/197288"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=197288"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/197288\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=197288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=197288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=197288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}