Click to enlarge: >Source: Bianco Research
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Happy Anniversary! Here we are, exactly 5 years to the day from the beginning of the credit crisis.
Jim Bianco dates the crisis as formerly beginning on February 8, 2007 when HSBC's Household International announced huge losses due to subprime lending. HSBC had to restate its 2006 earnings significantly lower. Bianco adds that while most people were asking what a subprime loan was, HSBC was "patient zero" of the crisis.
To underscore this was indeed the start, HSBC ended this lending unit March 2009, literally hours before the stock market bottomed.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
Ah, yes! Remember the old days of sitting in front of the black and white Philco and watching those commercials for HFC- the Household Finance Company.
cant quarrel w date that was a big one the subprime Implode-O-Meter which a friend sent me in July 07 started tracking subprime broker or lender implosions starting late 2006 http://ml-implode.com/
but my big date Aug 8 2007 for the global bank panic–have a big 5 year celebration for that one Before that it was claimed it was all subprime and :\”contained”
there are still losers out there who say subprime was only real loss and rest was liquidity?
Oh yeah memories. I was watching the ABX index and I sent a email to my realtor friend that day.
“The horse is out of the barn. Here we go.”
Wasn’t it late summer early fall 06 when one of HSBC’s MBS hedge funds blew up and they made the investors whole? That was the warning this event was the bomb.
Real Estate never goes down, son.
So the curb flattens from around 1950 to around 1974. This is segment is when baby boomers were growing up at their parents home. From late 70′s boomers go into to the labor market and into household formation frenzy driving house prices to new highs (till around early 90s last wave of boomers to past their 20s?). When this demographic demand fuel evaporated we see the new “affordable” mortgages to come in as second fuel. When the boomers and the credit fuels was totally exhausted we get the fail. So my question is who is left to lift the housing market demand organically?
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"The power of vested interests is vastly exaggerated compared with the gradual encroachment of ideas" "”John Maynard Keynes
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