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Posts Tagged ‘12th Street Capital’

Housing Barometer Makes New Low

Posted by Larry Doyle on March 8th, 2011 7:09 AM |

How do we measure what is really going on within the housing market? Regularly we see reams of housing data from new home sales, housing starts, building permits, and the Case-Shiller Housing Index. What are we to make of these various indicators?

Is there a common denominator that can be derived and utilized to measure what is truly going on within our housing market? Thanks to our friends at 12th Street Capital for bringing to our attention just such a vehicle. Let’s navigate, but bring your boots because where we’re going here does not look very pretty. (more…)

12th Street Capital Provides Perspective on the Foreclosure Fiasco

Posted by Larry Doyle on October 22nd, 2010 11:23 AM |

What the hell is truly going on within the entire mortgage foreclosure fiasco? There are seemingly more angles to this mess than there ever were choices of mortgage products themselves. Where can we turn to make some ‘sense’ of this madness? Let’s check in with the crowd on the cutting edge of this sinkhole, that is our friends at 12th Street Capital. Today they write,

Not surprisingly the ones that look to be best positioned during this mortgage foreclosure/put back fiasco are the lawyers. As reported by late yesterday, “A spokesperson for the New York law firm Quinn, Emanuel Urquhart & Sullivan confirmed to HousingWire it has been hired by the Federal Housing Finance Agency, a move some say means the government-sponsored enterprises are going after bad mortgages it bought from originators.” Guess what, the GSEs have ALWAYS pursued repurchases. (more…)

“The Giant Elephant in The Room”

Posted by Larry Doyle on September 21st, 2010 12:02 PM |

What is holding back our economy? Why isn’t there more credit available in our banking system?

I have answered these questions numerous times over the last two years BUT many in Washington pretend not to know the answer and pander to their constituencies in the process. Regular readers of Sense on Cents are well aware that the books of our banks–especially our largest money center banks–remain chock-filled with loans that are being valued far in excess of what they are truly worth. Let’s navigate.   

I first addressed issues within the second mortgage and HELOC (home equity line of credit) space in Fall of 2008 (Sense on Cents/Second Mortgages). Here we are a full two years later and America still has not received a straight answer and a full accounting by the banks or their regulators as to this “sinkhole” on their books and in our economy. 

Let’s dive into this hole, get a little dirty, and again expose the issues within this sector. (more…)

Report Points to Double Dip in Housing

Posted by Larry Doyle on July 14th, 2010 2:01 PM |

While economists and analysts are aggressively debating whether our nation’s overall economy is poised for a double dip, one firm is not bashful in highlighting that our housing market specifically is beginning to slide down the slippery slope of a double dip. Thank you to our friends at 12th Street Capital for bringing this report to our attention.

Housing Wire, a leading financial website providing news on the mortgage market, highlights the following report, Economist Reports the Housing Market Double Dip Is Beginning:

Toronto-based Capital Economics, an independent macroeconomic research firm, said Tuesday that a double dip in the United States housing market is now materializing. (more…)

Treasury’s Housing Program: “Big Hat, No Cattle”

Posted by Larry Doyle on April 21st, 2010 12:04 PM |

High five to 12th Street Capital for pointing out the quarterly release of the Special Inspector General for the Troubled Asset Relief Program. While this report covers a wealth of topics, let’s zero in on the SIGTARP’s summation of the Treasury’s HAMP (Home Affordable Modification Program).

As our friends at 12th Street write:

Ultimately, the report goes on to focus on HAMP and I would say this sums it up best:

“In sum, until Treasury fulfills its commitment to provide a thoughtfully designed consistently administered, and fully transparent program, HAMP risks being remembered not for catalyzing a recovery from our current housing crisis, but rather for bold announcements, modest goals, and meager results.”


Rep. Jen Hensarling (R-TX): “You Are a Sucker”

Posted by Larry Doyle on April 14th, 2010 10:10 AM |

Charity is one thing. Throwing good money after bad is an entirely different can of worms.

Is the Obama administration’s housing policy trying to be charitable in support of those who have truly fallen on hard times and need government assistance, or is it more redistributing wealth to those who made unwise financial decisions from the outset? Do Obama and team know the difference? (more…)

Gaming Uncle Sam’s Mortgage Modification Program

Posted by Larry Doyle on March 31st, 2010 11:08 AM |

A new release by the SIGTARP (Office of the Special Inspector General for the Troubled Asset Relief Program) is exceptionally enlightening in detailing how a likely significant percentage of those homeowners who entered the trial mortgage modification process gamed the system.

Once again, major high five to our friends at 12th Street Capital for sharing this report and providing insightful commentary. As 12th Street points out this morning:

With all of the hoopla surrounding the government and Bank of America announcements to push principal forgiveness to the top of the waterfall for mortgage modification triage, it would have been easy to miss the latest report from the SIGTARP (Special Inspector General of TARP). I have attached the report here and would encourage you to print it out and read it. (more…)

Where is Wall Street Hiding Hundred Plus Billion in Lo$$es?

Posted by Larry Doyle on March 8th, 2010 11:24 AM |

U.S. Rep. Barney Frank (D-MA)

Banks are increasingly healthy, right? Our nation’s accounting rules promote real transparency and integrity in our financial reporting, right? Housing is bottoming, right? No, no, and no!

Why so pessimistic, you may ask? I am not pessimistic at all. I am merely searching for the truth in the midst of the smoke and mirrors on Wall Street and in Washington.

Thank you to our friends at 12th Street Capital for sharing a recently released letter from Congressman Barney Frank imploring the four largest banks involved in mortgage originations to write off second liens they are holding on their books at inflated values.

Why does Congressman Frank believe these loans need to be written off? (more…)

SEC’s New Money Market Fund Rules

Posted by Larry Doyle on January 29th, 2010 10:44 AM |

Sense on Cents once again thanks our friends at 12th Street Capital for providing tremendously useful information and analysis. What do we learn today? The new rules adopted by the SEC for money market funds.

The overview of these rules is provided by Orrick, Herrington and Sutcliffe LLP.  The driving force behind the new SEC rules is an effort to promote greater disclosure and liquidity within money market portfolios. After the crisis of 2008-whenever (it’s not over yet), money market funds were and are much riskier than previously perceived. The risks lay in the fact that these funds invested in a fair amount of risky assets. Now that the government backstop of this industry has ceased, the new rules are needed for the industry to move forward.

Investors need to know that when these rules are effective (sometime  in 2010), funds can ‘break the buck’ ($1.00 NAV, net asset value) and suspend redemptions.  

Navigate accordingly knowing that the money market industry is not what it used to be.

Thanks again to 12th Street and to Orrick for this 2-page overview. Click on image to open pdf document:


Why Is the Market Selling Off?

Posted by Larry Doyle on January 28th, 2010 12:04 PM |

What is driving the market lower?

I thought the economy was starting to improve. Didn’t the Federal Reserve indicate as much just yesterday? Do you believe them? While we could debate the depth of integrity embedded in many statements that emanate from Washington, let’s focus on what we do know and see happening. In the process, we will be better positioned to most effectively navigate our economic landscape and the markets.

So, back to the initial question: what’s driving the markets lower? I see a confluence of reasons reflected in some dramatic price action. These reasons include: (more…)

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