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Goldman Sachs positive on subprime

By Call it Crazy   Follow   Sat, 1 Dec 2012, 4:06pm   320 views   5 comments
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Woo Hoo.... time to bring back NINJA and Liar loans!!!! Let the bubble repeat itself!!
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http://www.housingwire.com/content/bloomberg-goldman-sachs-positive-subprime-now

Right before the housing crisis, Goldman Sachs Group bet against subprime mortgages to spare the company major pain. But now the firm is promoting the opposite path with housing indicators starting to improve, according to a new Bloomberg news article.

Writers Heather Perlberg and Jody Shenn report that Goldman Sachs is encouraging clients to focus on the subprime ABX index.

Apparently with home prices on the rise and mortgage rates low, the investment bank is going the opposite direction from 2008 and suggesting investments tied to housing.

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1. mell Follow Befriend (5) 53 threads 1,300 comments Premium

   1   4:21pm Sat 1 Dec 2012   Share   Quote   Permalink   Like   Dislike (1)   Protected   It doesn't matter to the squid as they always win and they got rid of a lot of competitors during the bubble, those that were not big enough to fail. Time to rinse and repeat and keep throwing the muppets/peasant serfs under the bus. Life is great at the top!

2. EastCoastBubbleBoy Follow Befriend (11) 104 threads 455 comments Premium

   2   5:08pm Sat 1 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected   The question is not what they are telling their clients... what are they doing themselves? Do they see this as a short term wave that they can ride for a quarter or two, or are they banking *pun intended* on a long term trend upwards?

3. Call it Crazy Follow Befriend 229 threads 2,766 comments

   3   5:16pm Sat 1 Dec 2012   Share   Quote   Permalink   Like   Dislike (1)   EastCoastBubbleBoy says Do they see this as a short term wave that they can ride for a quarter or two, or are they banking *pun intended* on a long term trend upwards? I think they see it as a no lose situation. Since they borrow at the Feds ZIRP, they can make sub prime loans all day at +4%...... Then they get to sell those notes back as MBS as part of the $40 Billion Fed program each month, off loading all these "marginal" loans. It's a winning program for the squid!!!

4. bmwman91 Follow Befriend (7) 37 threads 1,526 comments Mountain View, CA bmwman91's website Premium

   4   8:53pm Sat 1 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected   Call it Crazy says Let the bubble repeat itself!! No no no. THE SPICE MUST FLOW!!!!!!!

5. E-man Follow Befriend (31) 34 threads 2,545 comments San Jose, CA Premium

   5   12:59am Sun 2 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected   EastCoastBubbleBoy says The question is not what they are telling their clients... what are they doing themselves? Do they see this as a short term wave that they can ride for a quarter or two, or are they banking *pun intended* on a long term trend upwards? At this point, I see the market will likely keep marching higher for the next 4-7 years, not a quarter or two. We are already in the 2nd phase of the housing recovery. The Fed is on the housing side all the way. Don't fight the Fed. A rising tide will save a lot of underwater homeowners, will create jobs and will generate more discretionary spending because people have more disposable income. I see higher home prices next year.