FAZ --Financials were down today- FAZ rose to a new high today
I have 7+ years background in the 'banking industry',previously worked for one of the 'failed institutions' and extensive experience in the financial realm.....you can choose to take my words in context to what's happening in the financials or ignore me...
IMO there's more truth and 'clarity' to come from this crazy market over the next few weeks/months. Remember, more variable ARM (3 and 5 yr) loans were written and will come due to adjust from Q2-Q3 09' (summer refinance trends from 03' and 06') and throughout 2010. The "loan modification programs" are NOT as deep, wide or broad as the media would like to portray. I would speculate to say that 1 in 10 actually achieve success with an accurate modification that prevents foreclosure.
Additionally there is yet another wave of foreclosures just beginning within the commercial mortgage sector. As more small business are faced with layoffs, downsizing and eventually bankruptcy these same businesses are being forced to close their doors. This creates an overabundance of commercial rental properties that are NOT occupied or generating revenue for property owners. These are LARGE (often multi-million $ properties) that are sitting empty and underutilized. Commercial property owners will only hold onto these vacant, revenue negative properties for so long before they also begin to default on their loan payments.....
Just perform a google search and review the current foreclosure stats throughout the US.
Govt money can only buy so much time when the foreclosures and the unemployment cycle continues to gain momentum....
