Sammy Jankis
Was it me?
It's based on investment products based on mortgages, technically.
But nobody is willing to say what they're worth. You better write the president with your "not zero" solution, you fucking nitwit.
Suspension of Mark to maket Means...
- Thread starter Sammy Jankis
- Start date
But nobody is willing to say what they're worth. You better write the president with your "not zero" solution, you fucking nitwit.
Cancel 2016.2
The Almighty
No techincally, when you break it down, it is based on the value of the underlying assets and the cash flow they present.
You are incorrect on the pricing. These securities are currently being priced to market... which means they are pricing based on the last trade... which again right now is typically the firesale prices.
Sammy Jankis
Was it me?
A mortgage's value is based on how much profit it generates if the terms are adhered to, not the value of the asset underlying it. People don;t prefer to get upside down in a mortgage, but it happens. The value of the mortgaged asset is tangential.
Apparently it's still too high.
But they refuse to create a government bailout price.
Sammy Jankis
Was it me?
No. It's called a correction.
Topspin
Verified User
At is right about fundementals leaving the equation. I don't know enough about mortgage selling to value them but I knew enough about stocks to not buy into the dot com bubble companies. Some financial gurus possibly SF are going to get rich buying it. I'll keep shitting my pants as I continue to by the S&P 500.
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The Almighty
No question part of it was a correction (one that was needed), but what you fail to comprehend is the fact that markets can over-correct. Especially when FEAR is a factor or when a company is forced to sell an asset in an illiquid environment. The market reflects the current price people are willing to pay, it does not necessarily reflect fair value.
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The Almighty
If you hold the mortgage to a property, you are correct, your investment's return is based on the PV of the cash flow. However, IF the person you loaned the money to defaults on the loan, you have the property itself as collateral. So again, for these securities to be worthless, not only does the borrower have to default, but the value of the property also has to go to zero.
Sammy Jankis
Was it me?
But yet, and still, they're so worthless, nobody wants to put a dollar value on them. NOT ZERO is not solid enough going foward, douchey idiotstick.
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The Almighty
You keep saying that... yet they are pricing.... and again, no matter how many times you chant the brainwashed line...'they are worthless' it remain bullshit. Or are you such a system suckup that you cannot think for yourself? The PROPERTIES HAVE VALUE.... THEY ARE COLLATERAL FOR THE LOANS... THAT PROVIDES UNDERLYING VALUE TO THE MORTGAGE HOLDERS MORON.
Sammy Jankis
Was it me?
They will not price them within the context of a public buy back, or backstop, or bailout, or whatever it is now. you know why? They don't want people to know how much they are getting screwed.
NOT ZERO is a valuation which doesn't seem to be cutting it, not in the context of a public assisted plan to "get them off the books".
Actually, no the property need not go to zero. You are ignoring a multitude of transaction costs.
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The Almighty
Ok, saying they haven't come to an agreed upon price SHOULD the government buy up the assets is one thing. You are correct, they have not agreed upon the price in that regards.
But that is completely different than saying they are not pricing these securities.
Saying they are 'not zero' is to refute your idiotic assertion that they are 'worthless' you twit. Why don't you go back to ranting about the joos... leave the real discussions for the adults.
Sammy Jankis
Was it me?
Superfreak has no intellectual credibility. He's a hack.
Sammy Jankis
Was it me?
They're next to worthless. Sorry. I stand corrected. And the whole phrase "mark to market" was created in the context of government assistance. Please stop being a retarded douche.
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The Almighty
Wow. What an idiot. Even with all of the transaction costs, the properties would still have to go near zero for these to be worthless.
Are you asserting that is the case right now?
Are you suggesting that the vast majority of these loans are going to default?
Are you suggesting that if they do default in mass that the properties will drop to values below that of your 'multitude of transaction costs'???
If you answer no to any of the above... then these securities are not worthless or near worthless as you two morons keep asserting.
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The Almighty
LMAO... the default rates are currently 8%, the properties have lost on average about 30%... yet you continue to proclaim that they are 'near worthless'... and you call me a retard.
You are a complete tool of the establishment. You have bought hook line and sinker the bullshit that is being fed to you. Pull your head out of your ass and do the math.... you will see what a fool you are.
Sammy Jankis
Was it me?
They are nearly worthless. For markets to function, customers must have money. With all our jobs going overseas, americans have no money. This fact was hidden with loose credit for quite a long time. Abandon your globalization pyschosis, and maybe americans will have jobs, and the prices will pick up. But now, they're nearly worthless. Why is it that you need to be schooled on this subject matter when you're supposed to be some sort of expert. You seem like a moron to me.
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The Almighty
I am done with your ignorance. You think by saying 'they are near worthless' over and over again somehow makes you correct. All the while you ignore the basic math. Because you are a tool.
What are they worth?
It is clear as day that they are not worth anything close to what the banks value them at. And getting rid of mark-to-market is not going to help establish what they are actually worth. It is only going to prolong the problem.
Sammy Jankis
Was it me?
Hey, slimey shitsack. The banks are AFRAID of their near worthlessness, so afraid they are demanding the government come in and set the price, somehow, someway, through some abusive machination which will transfer losses to the taxpayers.
you were done long ago, a couple pages ago when I wiped the floor with your retarded ass the first time.