Wall Street and Subprime

Wall Street's largest banks, brokers, hedge funds, 'Big Boys' are reeling from the worst housing disaster since the depths of the Great Depression! As U.S. real estate values nationwide continue to plunge, the first few dominos in a complex web of financial derivatives have already fallen - and this may be just the beginning.

During the recent boom-time in American housing markets, the titans of Wall Street lined up to feed at the money trough. Firms like Bear Stearns, Citigroup Inc., Morgan Stanley, Merrill Lynch, Lehman Brothers Holdings and JP Morgan Chase jumped at the chance to underwrite and re-package mortgage-backed securities - an estimated $6 trillion worth!

But the plunging property markets in the U.S. have brought the chickens home to roost - and the odor is very foul indeed. U.S. home prices and the $6 trillion mortgage-backed securities market are locked in a downward death-spiral racing to the bottom, which is marked by growing foreclosures, defaults and bankruptcies.

The share of sub-prime loans entering foreclosure in the first quarter of 2007 was the highest in almost five years, and sub-prime late payments rose to nearly 14% - indicating many more foreclosures ahead. The result is massive write-offs of collateralized mortgage obligations and other debt-derivatives that are exploding like hand-grenades amid the sub-prime panic. For instance, Countrywide Financial Corp., the largest U.S. mortgage lender, admitted to $110 million of foreclosed real estate on its books at the end of March - up more than 300% in just three months.

All of this foreclosed property must then be dumped on an already oversupplied real estate market, depressing prices even further. The result is likely to be a domino effect of even more catastrophic losses in mortgage-backed derivatives held by Wall Street's firms and the hedge funds they finance.

Already, two hedge funds at Bear Stearns were on the brink of being liquidated thanks to crushing losses in a $20 billion portfolio of complex and risky mortgage-backed securities and derivatives - much of it the toxic sub-prime variety. But Bear Stearns isn't the first victim, and won't be the last by any means.

In fact since 2000, Wall Street has created more than $1.8 trillion of securities and complex derivatives backed by sub-prime mortgages. Many of these are illiquid securities, so Bear Stearns' problems may be only the tip of the iceberg!

5 Languages of Love (Part 1)

Quality Time

Quality time is more than mere proximity. It’s about focusing all your energy on your mate. A husband watching sports while talking to his wife is NOT quality time. Unless all of your attention is focused on your mate, even an intimate dinner for two can come and go without a minute of quality time being shared!

Quality conversation is very important in a healthy relationship. It involves sharing experiences, thoughts, feelings and desires in a friendly, uninterrupted context. A good mate will not only listen, but offer advice and respond to assure their mate they are truly listening. Many mates don’t expect you to solve their problems. They need a sympathetic listener!

An important aspect of quality conversation is self-revelation. In order for you to communicate with your mate, you must also be in tune with your inner emotions. It is only when you understand your emotions and inner feelings will you then be able to share quality conversation, and quality time with your mate.

Quality activities are a very important part of quality time. Many mates feel most loved when they spend physical time together, doing activities that they love to do. Spending time together will bring a couple closer, and, in the years to come, will fill up a memory bank that you can reminisce about in the future.

Whether it’s sitting on the couch and having a brief conversation or playing together in a tennis league, quality time is a love language that is shared by many. Setting aside focused time with your mate will ensure a happy marriage.

Eagleboy's score on this: 5th (ie this is my least important love language)

Clarification needed: Least important doesn't mean not important. It is least important compare to the other love languages. So please do spend time with me, okay.

Job Switching

Random coincidences? By default or design? By appointment or by accident? 2 friends asked me about switching jobs today. If one more individual ask me the same question within the next 8 hours, I will go & buy 4-D or Toto tomorrow. I will.

But to the many out there, I have a quick question for you:

Do you just somehow know that you’re "playing too small" in life?" Do you feel like you’re stuck in a rut in your job or personal life? (okay...that's 2 questions above)

Fact is: We live unexamined lives in a unstoppable changing environment. The masses' lamentation is : No time! I can suggest you go wear two watches, but you will still have no time. Why? Think. No time to think. Reflection & solitude is practically a lost art. A clear 20-20 vision is so needed yet so lacking. No wonder some call ours a lazy generation.

The problem for this generation sometimes lies in having too many options & choices before us. Having none is equally bad for our previous generation. Ponder about this.

To the younger girl who wanted to exit the advertising market to join the financial industry, this is what I can offer: One step at a time. There are shortcuts apparently, but they are not for you, for obvious reason. Remember: Shortcuts often short-change you & short-circuited your developmental tasks at hand.

Take a chance on your greatness, my friend!
Take the first step of action right now.
Take charge, not take cover.

And keep this in mind: When the student is ready, the teacher appears!