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!

Seek Opportunity, not Security

The more you seek security, the less of it you have. But the more you seek opportunity, the more likely it is that you will achieve the security that you desire.

- Brian Tracy

他的女人 - by 刘德华

歌曲：他的女人
歌手：刘德华
专辑：你是我的女人

何时远何时近
有几多几多可是缘份
轻轻一吻
就可得一个人
祈待我女人

仍然远然近
似馆中古董失掉年份
回望那过去叙述仍然最真
一次错的吻

当天的想结婚
只相告你已是我的情人
永远你在似是陪衬
似是传真挑选转身
真的苦恼自寻
今天偷看他的女人
方知道你已是嫁给别人
暗里我在眼泪微渗
眼泪强忍声音有点震 (music)

仍然远仍然近
似馆中古董失掉年份
回望那过去叙述仍然最真
一次错的吻

当天的想结婚
只相告你已是我的情人
永远你在似是陪衬
似是传真挑选转身
真的苦恼自寻
今天偷看他的女人
方知道你已是嫁给别人
暗里我在眼泪微渗
眼泪强忍声音有点震

永远不去问
从今天以往只会记挂记挂在我心
明越痛去爱对爱越真
深深印
你已是寄居我心 woo

当天的想结婚
只相告你已是我的情人
永远你在似是陪衬
似是传真挑选转身
真的苦恼自寻
今天偷看他的女人
方知道你已是嫁给别人
暗里我在眼泪微渗
眼泪强忍声音有点震

Market Today is Back!

Another day of mixed action across the board. The NASDAQ lead the way in terms of percentage gain yesterday, closing with a gain just over 0.50%. The Dow closed slightly higher, at +0.15%, while the S&P 500 closed flat. US stock futures are trading sharply lower this morning.

It seems the sub prime issue is making headlines once again. A Bear Sterns hedge fund that was reportedly worth just over $600 million in March is now said to be worthless. Yes. Zero. Downgrades in the sub prime sector have been taking place all morning as well.

Aside from sub prime news, there were several data releases this morning. They are as follows:

Core CPI m/m: +0.2% vs +0.2% consensus
CPI m/m :+0.2% vs +0.1% consensus
Core CPI y/y: +2.2% vs +2.2% consensus
CPI y/y: +2.7% vs +2.6% consensus
Housing Stats: 1467 vs. 1450K consensus
Building Permits: 1406vs. 1480K consensus

The yield on 10 year Treasury remains stable, now at 5.05%. Crude Oil is now putting pressure on 75 resistance, trading at 74.24 per barrel. Gold has stabilized a bit after seeing some upside momentum, now at 667.10 an ounce.

That's all for now. I am look ing for a picture to post in my next entry. Look out for it.

The Waiting Game

General Omar Bradley once said,

"This is as true in everyday life as it is in battle: We are given one life, and the decision is ours whether to wait for circumstances to make up our mind or whether to act and, in acting, to live."

Waiting.

That's what a lot of people I know do.

They wait for the right time to lose weight, invest in real estate or stocks, start a new business, follow through with an idea, etc. My favorite "waiting" thought process occurs in people who want to change their nutritional lifestyle (another way of saying 'Lose that kilo'). They will wait until Christmas or New Year is over, or Easter, or whatever holiday is around the corner.

The problem is: there is always a holiday or vacation or a party "just around the corner".

The real estate or stock market is up. No, it's down. No...I am not sure...

The market is always fluctuating. Correction ahead. Sideway trading...You know what? Holidays will always be around the corner. Yet someone is always making money in stocks and real estate and someone is always staying in shape. Round is also a shape, you know?

So what is the best defense to "waiting" for the perfect time?

Education.

Learning how to enjoy the holidays but still stick with you nutrition guidelines.

Learning how to invest in businesses, stocks and real estate in a way you will have minimal losses and maximum gains

You have to invest in yourself. Invest in books, CD's, DVD's, coaches, mentors and surround yourself with like minded friends, like ... ahem ... me. I have heard my first sales mentor who said that '5 years from now, who you will become is a by-product of the books you read & the people you meet'. I must add that it is also the by-product of the principles you heed and the food you feed.

Create your own circumstances. Stop waiting!

If you have any questions where to start, please drop by my blog often.

To Your Health, Happiness & Wealth!