Replies to post #519989 on Mr Cooper Group Inc (COOP)

[jerrylev]

According to the following article, selling bottled water is the most profitable, 1000%.

But selling fruits and vegetables, although they are marked up 50%, is not as profitable because 20% have to be thrown away.

So Bbanbob, do you think that mortgage loans have 1000% profit, i.e. if you have a 100K home loan, you will end up paying 1 Million?

http://smallbusiness.chron.com/supermarkets-determine-markup-produce-cigarettes-80905.html

[Split T]

Mr. Bbanbob, Your absolutely right.

Minor leagues come to mind with such gibberish, don't you think?

There are a few here that are bringing forth some good DD and new thoughts, but they are far and few between. Looks like a crew from BP has entered the fray.

[hotmeat]

Where there are assets there must be liabilities. WAMU held $300B+ in assets but also $270B+ in liabilities, therefore making those assets not worth anything close to $300B once liabilities are paid.

For example, if the underlying loans of MBS's were funded by bank deposits, those deposit liabilities must be repaid. The actual value of the asset comes from the interest payments only, not the total asset.

If the loans were funded using company profits then the opposite would apply since both the principle and interest payments would be credited to the company. Here $30B in loan assets have an actual value of ~$30B since there are no funding liabilities.