indymac gets in the layoff game
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IndyMac Laying Off 2,403 Employees
Tuesday January 15, 6:03 pm ET
By Alex Veiga, AP Business Writer
Mortgage Lender IndyMac to Lay Off 24 Percent of Its Work Force to Slash Costs
LOS ANGELES (AP) -- Mortgage lender IndyMac Bancorp Inc. said Tuesday it will slash its work force by 24 percent, laying off 2,403 employees in a bid to cut costs as it tries to weather the worsening housing slump and sagging demand for home loans.
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IndyMac Laying Off 2,403 Employees
Tuesday January 15, 6:03 pm ET
By Alex Veiga, AP Business Writer
Mortgage Lender IndyMac to Lay Off 24 Percent of Its Work Force to Slash Costs
LOS ANGELES (AP) -- Mortgage lender IndyMac Bancorp Inc. said Tuesday it will slash its work force by 24 percent, laying off 2,403 employees in a bid to cut costs as it tries to weather the worsening housing slump and sagging demand for home loans.
that was my point tizdork.
if the fed stopped keeping the system afloat, companies like amd would already beup and the remaining tech left standing would be ok.
they can't anymore that's my point we've reached critical mass
just watch
no more sheep left to shear at this point they already locked in and enslaved to debt (not only that our bloated government has each and every one of us locked in debt too) and the sheep have gotten lazier while the rest of the world has gotten hungrier
2000 was the start of a secular bear, the last 5 years was BS fluff (creating more bubbles) cyclical bull which will only make the ultimate fallout worse
chances of me leaving the US have gone up greatly the past 6 months that's for sure
WOOF looks like I am the biggest loser of them all Short GS at 190...cover half my position at 200 and now closes 193! Well if I can get another drop I will break out even...F*UK....."Day late and more than a couple thousand short"
Hitman this is what I saw coming and I only think it will get worse....
WOOF.....As you know I have been pulling out of the US markets for some time now, BUT still have 35% in US equities...Any reccomendation for RIGHT NOW?? I planned on just satying put..and if and when oil drops another 10 bucks which I think it will I WILL BUY...What do you think??
Hitman this is what I saw coming and I only think it will get worse....
WOOF.....As you know I have been pulling out of the US markets for some time now, BUT still have 35% in US equities...Any reccomendation for RIGHT NOW?? I planned on just satying put..and if and when oil drops another 10 bucks which I think it will I WILL BUY...What do you think??
gs like shorting the top of the pyramid scheme that is crumbling
yeah it'll go down with everything else
but alot better targets to go after and will bring you more gains
maybe i'm wrong and the smart jews leverage will bite them hard in the ass sooner or later
but based on the fact that they predicting recession in q2 and q3 of 2008 i'm guessing their traders are loading up on shorts
btw 190.31 in AH so for now near break even, intel really dragged everything and anything with it in AH
we'll see what tomorrows data heavy day and wells fargo and JPM results bring with it (if they do poorly will definetly be good for GS shorts as they also investment banks)
i agree with tiznow and what jdog posted last week.
much easier targets than gs out there to short. this isnt an i told you so post like alot of others ive made here, but you could have shorted almost any other stock on the board and made money instead of hoping to break even.
leave the smartest guys on the street alone unless you are going to ride their coattails during upswings.
of course gs could still tank, but if they tank, ill bet the rest of the market will also tank and probably much more than gs tanks.
much easier targets than gs out there to short. this isnt an i told you so post like alot of others ive made here, but you could have shorted almost any other stock on the board and made money instead of hoping to break even.
leave the smartest guys on the street alone unless you are going to ride their coattails during upswings.
of course gs could still tank, but if they tank, ill bet the rest of the market will also tank and probably much more than gs tanks.
i dont know if this is still true, but when i bought gold 7 years ago, jpm was short more gold using various derivatives than what exists via above ground supplies.
jpm traders shouldnt even be mentioned in the same conversation as traders at gs.
their bad gold positions are possibly enough to put the firm out of business.
like ive posted many times before, this war being fought between the large bankers and gold believers is real and the people betting against gold are going to lose and lose badly.
%^_
jpm traders shouldnt even be mentioned in the same conversation as traders at gs.
their bad gold positions are possibly enough to put the firm out of business.
like ive posted many times before, this war being fought between the large bankers and gold believers is real and the people betting against gold are going to lose and lose badly.
%^_
speaking of economy check out MI exit polls
According to just-released exit polling, a majority of Michigan Republican primary voters — 55 percent — said the economy is the most pressing issue facing the nation. That compares to 18 percent who said Iraq, 14 percent who named illegal immigration, and 10 percent who pointed to terrorism.
hopefully the moonbat can surprise um with a finish in the teens fighting with huckster for 3rd and get some momo going with the economy going belly up
According to just-released exit polling, a majority of Michigan Republican primary voters — 55 percent — said the economy is the most pressing issue facing the nation. That compares to 18 percent who said Iraq, 14 percent who named illegal immigration, and 10 percent who pointed to terrorism.
hopefully the moonbat can surprise um with a finish in the teens fighting with huckster for 3rd and get some momo going with the economy going belly up
michigan is an economic trainwreck and northern michigan, much of which is a retirement, second-home, leisure area for the rest of the states industrial base employees, is one big yard sale nowadays.
blame much, of this situation on the govt failure to maintain a gold standard, which in turn had led to disgusting amounts of waste and now our businesses cannot even compete in a global economy.
also, we the people are partly to blame for being ignorant about how important it was to maintain a gold standard and the disasters that are destined to result from its demise.
we've allowed to happen what our forefathers fought against and died to establish and maintain.
blame much, of this situation on the govt failure to maintain a gold standard, which in turn had led to disgusting amounts of waste and now our businesses cannot even compete in a global economy.
also, we the people are partly to blame for being ignorant about how important it was to maintain a gold standard and the disasters that are destined to result from its demise.
we've allowed to happen what our forefathers fought against and died to establish and maintain.
those dirty dirty SIVs
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SIV asset values sink further to 50 percent-Moody's
Tue Jan 15, 2008 7:15pm EST
By Neil Shah
NEW YORK, Jan 15 (Reuters) - The net asset value of so-called structured investment vehicles fell to around 50 percent by the end of November as troubles in credit markets continued to haunt the funds, Moody's Investors Service said.
Net asset value is a measure of the percent of capital left over after structured investment vehicles, or SIVs, sell their assets and repay senior debt holders.
The average net asset value for SIVs had dipped below 90 percent in August when worries about rising defaults on risky subprime mortgages sparked a broader financial crisis, pushing nervous investors out of the SIV market.
More troubles for SIVs may lie ahead: A relatively heavy $32 billion of SIV debt will need to be refinanced through asset sales or alternative funding in January, up from $15 billion in December. After February the funding needs taper off, according to a report released by Moody's on Tuesday.
SIVs are specialized funds commonly run by major banks that raise cash by issuing short-term debt and invest the proceeds in longer-dated and higher-yielding assets. The funds pocket the difference between what they make on their investments and the interest they pay out to investors.
However, SIVs have been unable to fund themselves normally for months and the market value of their investment portfolios has plummeted, prompting rating warnings and downgrades.
According to Moody's, SIVs have reported a decline in assets under management from almost $400 billion in July 2007 to $300 billion by mid-November and $200 billion by mid-December.
The rating agency on Nov. 30 said it was reviewing its ratings for $105 billion of senior SIV debt, and in early December extended the review period to account for new information about possible changes to the funds.
Most of the review has been completed, Moody's said.
"The entire SIV business model is now widely acknowledged as unsustainable without restructuring," said Moody's analyst Henry Tabe in the report.
SIVs are now selling assets and restructuring to protect their investors, often obtaining guarantees from their sponsors to pay off maturing debt or effectively turning themselves into less-risky asset-backed commercial paper (ABCP) conduits, Moody's said.
Unlike SIVs, ABCP conduits have a "liquidity backstop," or a provision that allows them to tap emergency cash if they can't pay investors. Other SIVs are pursuing more temporary funding options, such as having their sponsors buy maturing commercial paper.
SIVs liquidated more than $55 billion of assets to raise cash between June 1 and Nov. 16, Moody's said.
The funds invest differently, but many buy a combination of bank corporate debt and structured finance assets.
SIVs with relatively large concentrations of nonprime U.S. residential mortgage-backed securities and structured finance collateralized debt obligations tend to have net asset values below 50 percent, while other SIVs have NAVs closer to 77 percent, Moody's said.
------------------------------------------------
SIV asset values sink further to 50 percent-Moody's
Tue Jan 15, 2008 7:15pm EST
By Neil Shah
NEW YORK, Jan 15 (Reuters) - The net asset value of so-called structured investment vehicles fell to around 50 percent by the end of November as troubles in credit markets continued to haunt the funds, Moody's Investors Service said.
Net asset value is a measure of the percent of capital left over after structured investment vehicles, or SIVs, sell their assets and repay senior debt holders.
The average net asset value for SIVs had dipped below 90 percent in August when worries about rising defaults on risky subprime mortgages sparked a broader financial crisis, pushing nervous investors out of the SIV market.
More troubles for SIVs may lie ahead: A relatively heavy $32 billion of SIV debt will need to be refinanced through asset sales or alternative funding in January, up from $15 billion in December. After February the funding needs taper off, according to a report released by Moody's on Tuesday.
SIVs are specialized funds commonly run by major banks that raise cash by issuing short-term debt and invest the proceeds in longer-dated and higher-yielding assets. The funds pocket the difference between what they make on their investments and the interest they pay out to investors.
However, SIVs have been unable to fund themselves normally for months and the market value of their investment portfolios has plummeted, prompting rating warnings and downgrades.
According to Moody's, SIVs have reported a decline in assets under management from almost $400 billion in July 2007 to $300 billion by mid-November and $200 billion by mid-December.
The rating agency on Nov. 30 said it was reviewing its ratings for $105 billion of senior SIV debt, and in early December extended the review period to account for new information about possible changes to the funds.
Most of the review has been completed, Moody's said.
"The entire SIV business model is now widely acknowledged as unsustainable without restructuring," said Moody's analyst Henry Tabe in the report.
SIVs are now selling assets and restructuring to protect their investors, often obtaining guarantees from their sponsors to pay off maturing debt or effectively turning themselves into less-risky asset-backed commercial paper (ABCP) conduits, Moody's said.
Unlike SIVs, ABCP conduits have a "liquidity backstop," or a provision that allows them to tap emergency cash if they can't pay investors. Other SIVs are pursuing more temporary funding options, such as having their sponsors buy maturing commercial paper.
SIVs liquidated more than $55 billion of assets to raise cash between June 1 and Nov. 16, Moody's said.
The funds invest differently, but many buy a combination of bank corporate debt and structured finance assets.
SIVs with relatively large concentrations of nonprime U.S. residential mortgage-backed securities and structured finance collateralized debt obligations tend to have net asset values below 50 percent, while other SIVs have NAVs closer to 77 percent, Moody's said.
UK housing going poof as inflation is rampant they in big trouble too
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U.K. Housing Market Was Worst Since 1992 in December, RICS Says
By Jennifer Ryan
Jan. 16 (Bloomberg) -- U.K. real-estate professionals said December was the worst month for the housing market since the aftermath of Britain's last recession in 1992.
The number of real-estate agents and surveyors saying prices fell exceeded those reporting gains by 49.1 percentage points, the Royal Institution of Chartered Surveyors said today in London. That compares with 40.6 points the previous month. In the capital, confidence in prices fell to the lowest since 2003.
An end to the U.K.'s decade-long housing boom may threaten economic growth as falling home values discourage consumers from spending. Economists forecast the Bank of England will cut the benchmark interest rate for a second time next month after a reduction in December to guard against fallout from the collapse of the U.S. subprime mortgage market.
``The housing market is clearly feeling the pinch from the credit crunch and the round of interest rate hikes in 2007,'' Ian Perry, a spokesman for RICS, said in a statement. ``The Bank of England may have to cut rates further if the market is to remain in a stable condition.''
A measure of expected prices slid to minus 62 from minus 47 in November, both the lowest since RICS started collecting data on the outlook in Oct. 1998, the report showed.
East Anglia
All 12 regions represented in the survey showed price declines. Northern Ireland and East Anglia posted the worst results, with balances of minus 82 and minus 81, respectively. London's reading fell to minus 54 from minus 27 in November.
``Very quiet in December, with little to give the market confidence, unless we see another drop in interest rates,'' Christopher Philpot, real estate agent at Lacy Scott & Knight in East Anglia, said in the statement.
Other reports have also shown a weaker property market. HBOS Plc, the country's biggest mortgage lender, said Jan. 8 house prices fell 0.8 percent in the three months through December, the first quarterly drop since 2000. Nationwide Building Society said that values fell 0.5 percent in December.
The Bank of England last month reduced its benchmark to 5.5 percent as consumer spending showed signs of weakening, and a Bloomberg News survey of Jan. 4 showed most economists forecast the rate to fall to 4.75 percent by the end of 2008. Retail sales rose at the slowest pace since March 2006 last month, according to the British Retail Consortium.
``The housing market is in the throes of a significant correction,'' said Richard McGuire, an economist at Royal Bank of Canada in London. ``We don't see a collapse, but there will be a pronounced downturn that will weigh on consumption.''
Economic Growth
The central bank forecast in November U.K. economic growth would slow this year to about 2 percent from about 3 percent in 2007. The bank will publish new growth and inflation forecasts on Feb. 13.
RICS, which lobbies for about 150,000 property surveyors, said in a Dec. 20 statement that pent-up demand and interest rate cuts will prevent a slump in the U.K. property market this year.
First-time buyers had been shut out of the market as prices tripled in a decade and supply dwindled. Construction of new homes in Britain stagnated at 148,000 units a year on average between 1989 and 2005, down from a peak of 425,000 in 1968.
``Supply would have to loosen considerably before prices experience a significant dip,'' Perry said. Today's report shows stocks on the books of real estate agents rose to an average 76.9 from 71.8 the previous month.
Still, homebuyers may be further discouraged from browsing property as U.K. banks plan to make fewer loans to consumers and companies in the first quarter, according to the Bank of England's quarterly survey on credit conditions, published this month.
----------------------------------------------------
U.K. Housing Market Was Worst Since 1992 in December, RICS Says
By Jennifer Ryan
Jan. 16 (Bloomberg) -- U.K. real-estate professionals said December was the worst month for the housing market since the aftermath of Britain's last recession in 1992.
The number of real-estate agents and surveyors saying prices fell exceeded those reporting gains by 49.1 percentage points, the Royal Institution of Chartered Surveyors said today in London. That compares with 40.6 points the previous month. In the capital, confidence in prices fell to the lowest since 2003.
An end to the U.K.'s decade-long housing boom may threaten economic growth as falling home values discourage consumers from spending. Economists forecast the Bank of England will cut the benchmark interest rate for a second time next month after a reduction in December to guard against fallout from the collapse of the U.S. subprime mortgage market.
``The housing market is clearly feeling the pinch from the credit crunch and the round of interest rate hikes in 2007,'' Ian Perry, a spokesman for RICS, said in a statement. ``The Bank of England may have to cut rates further if the market is to remain in a stable condition.''
A measure of expected prices slid to minus 62 from minus 47 in November, both the lowest since RICS started collecting data on the outlook in Oct. 1998, the report showed.
East Anglia
All 12 regions represented in the survey showed price declines. Northern Ireland and East Anglia posted the worst results, with balances of minus 82 and minus 81, respectively. London's reading fell to minus 54 from minus 27 in November.
``Very quiet in December, with little to give the market confidence, unless we see another drop in interest rates,'' Christopher Philpot, real estate agent at Lacy Scott & Knight in East Anglia, said in the statement.
Other reports have also shown a weaker property market. HBOS Plc, the country's biggest mortgage lender, said Jan. 8 house prices fell 0.8 percent in the three months through December, the first quarterly drop since 2000. Nationwide Building Society said that values fell 0.5 percent in December.
The Bank of England last month reduced its benchmark to 5.5 percent as consumer spending showed signs of weakening, and a Bloomberg News survey of Jan. 4 showed most economists forecast the rate to fall to 4.75 percent by the end of 2008. Retail sales rose at the slowest pace since March 2006 last month, according to the British Retail Consortium.
``The housing market is in the throes of a significant correction,'' said Richard McGuire, an economist at Royal Bank of Canada in London. ``We don't see a collapse, but there will be a pronounced downturn that will weigh on consumption.''
Economic Growth
The central bank forecast in November U.K. economic growth would slow this year to about 2 percent from about 3 percent in 2007. The bank will publish new growth and inflation forecasts on Feb. 13.
RICS, which lobbies for about 150,000 property surveyors, said in a Dec. 20 statement that pent-up demand and interest rate cuts will prevent a slump in the U.K. property market this year.
First-time buyers had been shut out of the market as prices tripled in a decade and supply dwindled. Construction of new homes in Britain stagnated at 148,000 units a year on average between 1989 and 2005, down from a peak of 425,000 in 1968.
``Supply would have to loosen considerably before prices experience a significant dip,'' Perry said. Today's report shows stocks on the books of real estate agents rose to an average 76.9 from 71.8 the previous month.
Still, homebuyers may be further discouraged from browsing property as U.K. banks plan to make fewer loans to consumers and companies in the first quarter, according to the Bank of England's quarterly survey on credit conditions, published this month.
