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I still say at least some of the financial crisis would have been avoided if banks simply re-wrote the terms on those subprime mortgages to more favorable conventional terms. It's cheaper for a bank to do that than lose an average of 40k bucks through a foreclosure. So the bank and borrower made a bad choice doing the creative financing. Well, the bank can either hurt the borrower and double/tripple the payment on them or they could recognize that the borrower could never afford that and rewrite the terms.
Banks would rather shoot themselves in the foot and employ more foreclosure lawyers than to take their half of the responsibility of selling a risky mortgage.
I know there's a lot of folks who simply said screw it and left their houses or refused to pay. But given the chance, I'll wager most of those subprime borrowers would still be making payments on their homes if the banks were more flexible.
IMO, banks share at least half of the responsibility of being fiscally irresponsible but banks hold 90% of the control on how to work things out. Banks did this to themselves to the market's peril.
Edit - The average cost to a bank to foreclose is 60k, not 40k.
http://www.therealestatebloggers.com/2007/05/07/freddie-mac-says-typical-foreclosure-costs-60000-dollars/
Edit again - Combined cost to foreclose for the lender, borrower, local government and neighbors is 75k!
http://www.bloggingstocks.com/2007/12/04/foreclosure-costs-explained-75-000-per-house/
Why wouldn't the banks reach out and simply rewrite the loans to more favorable terms?
I have 1200 shares of it now! LOL! If this goes to $1, I'll be extremely happy with the trade. Playing it like a penny stock.
LOL! Thanks, but I can't take the credit though. Hehehe Gas prices better drop ASAP when those refineries get up and going again. Hurricane Ike hit at a nasty time. Anytime is bad but with the economy in it's present shape, the last thing we needed was a disaster to raise gas prices!
I'm hoping IBM drops under $100 soon. That's one I really want to load up on. A market correction will be HUGE for IBM, IMO.
LOL! Lehman Brothers filed bankruptcy due to buying up billions in exposure to sub-prime mortgages from banks using real cash that they could honestly put on a balance sheet. It has NOTHING to do with officers lying about assets or exaggerating the balance sheet. In fact, one of their down falls was not asking for help sooner.
I sold most of my put contracts for 100% gainer last week and I kept one put until today. That one Oct 7.50 put contract cost me $247 last week. Sold today for $730.
You need to actually know what you post before you hit the submit button. Using LEH as a comparison to CSHD was ridiculous at best. CSHD = Fraud. LEH = Bad economy mixed with horrible decisions with REAL cash assets.
LOL!
Dude, if you didn't know the SEC filed charges against Rufus for fraud, I can't help you. You've been trading for 9 years? You're failing on basic knowledge here.
Now that the SEC won, many of us are hoping the DOJ will get involved and file criminal charges against that liar.
CSHD would be doing well if it was NOT on the OTC BB's and required to file. If this was only on the OTC, your point of letting the market sort it out would have worked out fine. Do you know the difference between the OTC BB and the OTC plus the requirements of each?
"So where are the charges? Isn't that what you believe happened?"
You don't? I don't even know how to respond to that.
Remember the other day you gave me some suggestions of DIA Dec. options?
Here's one I picked up:
.DAVXL DIA DEC 90 Puts @ .54. Right now, the bid's at .85.
Me thinks this will drop more tomorrow.
B.S.
I could upload and post pic's of any passport I wanted and the only thing that would happen is the passport owner, if they existed, would insist I remove the images. If the person did NOT exist or if I had falsified the image, said person would either not know nor care. The FBI couldn't give a rat's a$$ because I didn't attempt to use a false passport for any reason other than to trick the unsuspecting. Even then, they'd have to prove my ill intent.
Posting a "bond agreement" whether true or not on the Internet does NOT bring about federal charges. Worst case is that the people in your forgery find out you're using their name and they'll insist that you stop it. Where the charges come in is if you use a falsified document, much like the one you posted below, and claim it's contents as an asset in a filing for a public company when in fact it's a lie.
If the document you just posted is NOT a lie, then you could DD the bond it's referring to and confirm that Rufus owns it. LOL!
Good luck with that!
An observation - The document you posted shows that the ownership was transferred to CSHD. That should be easy to DD if the document wasn't a fake or a tool for misleading. However, don't a lot of the faithful claim the bonds are in Rufus's name? LOL!
Again, good luck with that.
Where's all that DD on the bonds Rufus claimed to own. If Rufus isn't/wasn't a scammer, the faithful certainly could prove 100% ownership by now, right? I mean, it's no longer a secret.
Rufus's plan worked. He had you and many others looking for the NSS bad guys that apparently don't exist. All the while, all of you forgot what the original charges are for by design. Because even now, none of you can point out how/where Rufus owns ANY bonds outside of some .jpg for one of them. LOL!
DD the bonds and tell us what you find out.
Regarding the dump... Rufus tried to profit from the charade through his family but the broker said "hell no." LOL!
That was a great idea on his part. Don't sell because the SEC would look at him. He got his family to try and sell because then THEY could play stupid with the SEC. Rufus looks like he didn't dump which is accurate. Now all he has to do is continue telling the faithful and the SEC that "to the best of his knowledge, everything was in the green."
LOL!
I still say that Rufus sorely underestimated the power of SOX (Sarbanes/Oxley). That's what got him, IMO. Without that, his accountant would probably still be a member of that oversight board.
Man, look at oil under $95! Awesome. IMO, 5 more to go until we hit the base. Getting some USO Calls and Puts today. IMO, both can be profitable if played correctly over this week.
http://biz.yahoo.com/rb/080915/markets_oil.html
Picked up some of these:
.UNAJB USO OCT 80 Calls
.UNAVR USO OCT 70 Puts
I see it at .34! I'm dropping my last contract today. Can't see it going down much more than this. LOL!
Glad I held onto one of my LEH Put contracts. Wow!
Maybe:
"Troubled U.S. investment bank Lehman Brothers Holdings Inc. announced it would file for bankruptcy after prospective buyers, including Barclays PLC, backed away from a deal over the weekend. Also, Bank of American Corp. said in a statement early Monday that it would acquire Merrill Lynch & Co. in an all-stock transaction worth about US$50 billion."
http://news.yahoo.com/s/ap/20080915/ap_on_bi_ge/world_markets
Hopefully, they're done using our tax dollars for these companies.
The Rufus paradox strikes again. In case anyone has doubts the man is a liar, check this out:
I'll start off by stating that it is FACT that Rufus had been priding himself on forcing this issue to court. Even though ALL SEC cases are federal, Rufus has stated he wanted this in a federal court and got his way. LOL!
Now, thanks to dirtdigger on HSM, here is a post from Rufus:
"Boss
Re: THURSDAY SEPT. 11TH, 2008
Reply #210 on: Yesterday at 04:00:28 PM
Oh Alana, the Judge denied you disgorgement for the lack of Evidence and Facts!!!
What did yall do for the past 2 years?? I can not wait until yall are answering questions about why you did not go after the fake market shares and How insiders such as MA, DP and JG were able to sell shares!!!!
Here is the real truth about yesterday People; the SEC could have passed the fines and restrictions on to me without the court!!! So.......... what was yesterday really about?
When you understand that; then you understand what is going on!!! And yes it is Simple Stupid!!!"
So on one hand, Rufus calls it victory that he got the case to court. Now that it got there and nothing came out of it, Rufus is challenging why it went to court in the first place.
BTW - If I'm not mistaken, the SEC can impose fines without court. But only to those companies that cooperate and agree to said fines before going to court. Even then, it may still require a judge to agree to the fines in question.
Rufus is lying to the faithful again.
LOL!
"When the trading was halted, the witness stated that RPH called and asked why. She said she explained the circumstances and that he began to discuss high level info he knew regarding trading, stocks, etc., and said he would sue if they didn’t proceed."
Oooooooo. Scary Rufus is going to sue. I wonder where that ended up. LOL!
Not Rufus's fault. Nope. No way. It was the evil SEC.
And THIIIIIIS time, Rufus is going to come through. LOL!
Gotcha on your scenario. Yeah, that would obviously be a huge NSS position.
The reason why I couldn't care less anyone else dumped and profited on insider info, illegally, etc. is for this simple reason. Rufus was and is lying. He lied daily back in the day. He lies constantly today. People bought the stock based on audited financials. Even if someone dumped, that shouldn't matter if Rufus was NOT lying. I'm certain there were others that were part of the lie. But it was Rufus who championed the business. It was Rufus's signatures. It was Rufus's responsibility to represent the company. The list goes on.
Did you know that Boone Pickens bought 10 million shares of YHOO? He did so because he thought there was going to be a MS purchase above what he paid. When he found out it wasn't going to happen, he dumped all 10 million shares. You don't think he knew what was up before hand? But his dumping had NO bearing on the PPS outside of the days he was dumping. Even then, the PPS remained relatively constant.
That's why I don't care about any criminals that dumped illegally. Rufus is the one that sold the lie and continues to do so even today. A vocal scam artist is far more dangerous than a silent criminal in the financial sectors.
I don't know, Masta. What's the PPS in your scenario? If the PPS was 10 bucks, then yeah, over 3 months, of course 1.2B could change hands. You are not understanding though. That 1.2B could be traders trading and average of only 100 million per month amongst themselves.
No one here has stated they don't believe any NSS positions existed in CSHD. But that's nothing to do with the Fraud that Rufus committed.
What you are not understanding regarding the case is that it has NOTHING to do with NSS. It has everything to do with Rufus's fraud charges. If Rufus wants it to be about NSS, he would have to open a new case. Or if he wants to bring it up in THIS case, let him do it. Not sure that would make a hill of beans difference though. What is Rufus afraid of in exposing the NSS? He's provided NOTHING factual regarding that claim.
30 million OS x's $2 per share = 60 million. How many days did it trade at that price and higher? LOL! 157 million traded on this stock was EASY.
The 15 million stated as being an "investor loss" is subjective at best but is a simple average considering what the value was at the beginning of the halt compared to after.
I think the price dropped well under $2 leading to the halt so let's use that. 60 million USD value (OS X 2 bucks) before the halt. When the halt was lifted, people (including your's truly) were selling out from .75 down to .01 before subpennyland. Factor in averaging down and voila! You have 15 million shareholder loss... or there's about.
What is it about stocks changing hands don't you understand? 100 million traded in a day means that someone bought and someone sold. Sometimes those same people buy/sell multiple times per day which shows up in the total VOLUME. Total VOLUME does not = total outstanding shares.
We've gone over this several times over the last couple of years already.
I think LEH is a good buy down here. I bought the stock. 100 shares to see what happens down the road.
OPEC members stated they wanted it around $90 because their supplies keep going up. They can't sell everything they have at today's prices. Of course they may change their mind at any time.
LOL! Nice summary.
I had to call it in. Optionsxpress support is good. They advised me that there is an issue with the options ticker and they are currently working. So I called in my sell order which executed at 4.2.
I can't speak to any other brokerages though. I'm a bit upset because I had to give up total control of how much to sell, etc. However, since I can't say how low LEH will drop, the 90% gainer is fine. I kept ONE contract though just to see what happens. LOL! That one still shows zero value though. I guess I'll eventually have to call that one in as well.
Working on it. Does anyone else have LEH puts?
Well, I'm pissed. I'm missing a big opportunity right now.
I have these:
.LYHVU LEH OCT 7.5 Puts
But my ticker shows ZERO right now!
And when looking at the chain, it shows my Oct 7.5 puts are "NJSVU".
WTF?
I guess it's crystal clear what the SEC meant by Rufus "planning" to profit from this. He and his family didn't have a chance to follow through. LOL! Well, that's good.
Thank you for the information! I wonder if the SEC will defer to the DOJ for criminal charges now.
I just fell out of my chair of not surprised. LOL!
I never stated he gave a rat's ass about his mom. In fact, even today... I wonder if his mom was lying on the CSHD thread back in the day or did she really not know what's up?
If you're hiding money and you want the impression that you're broke, file bankruptcy assuming no one can actually find your loot.
Better yet, let someone close to you file BK whom has no ties to said loot.
In both scenarios, you have a scammer creating an illusion to remove eyes from ill-gotten gains.
I just might buy both. 5 of each and see what happens. A $500 bet.
BTW - Check out IBM. I sold my .IBMJD IBM OCT 120 Calls too early today but green is green. I have no idea how much it will correct itself back but I'm not planning to open any positions on it for either direction right now.
Thanks for the insight. I will definitely keep my eyes peeled.
I was curious that that no one seems to be mentioning a weak market the way they were a few months ago. But, I haven't seen much, if anything regarding a stronger market.
In your opinion, how far off? DIA puts would be the order for the day, I guess. Maybe some dirt cheap "OTM" puts around December?
So, supplies decrease but oil prices drop also? If this news item happened a few months ago, the price of oil would have shot up, IMO.
http://biz.yahoo.com/cnnm/080910/091008_oil.html
I believe in Rufus's post, he stated he was looking at both the H2 and H3 for his wife. Sounds like shopping to me but I may have misunderstood the post. Kinda like you misunderstood Rufus when he stated he had the 500, 800 or 900 million bucks in the bank! LOL! The number changed a few times as you can see.
You think oil is done dropping? I hope not. I'd love to see oil under $100 per barrel. My gut feeling is that we'll see oil hover in the $90's before making a move back up. IMO, of course.
Wow. FRE and FNM are both well over $1.00. I bought 100 shares of each at .89 and .87 respectively.
Rufus got shut down again? Noooooo. Say it ain't so. LOL! What a toon.