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What I worry about are derivatives which amplify losses. There could be a hedge fund or bank out there which is overleveraged and on the brink of shocking the entire system.How you feeling now?It's looking like it is going to end up somewhere between 700 points to 1,200 points up over yesterday as more and more people realize that Left Stream Media tried to create a hoax panic and some people fell for it.
This too shall pass.
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Lenders are being inundated right now. It is taking several days, up to a week, for them to process loans. You should get started now. I am in what is called a "floating lock" until the paperwork has been processed, which should be in two or three days. I started the process last week when the rate was 2.9. Since I am in a floating lock, it is now 2.65. At least, that's where it was Friday afternoon. It might be even better today.It's weird. I got three quotes from three different financial institutions. The highest was 4.5, the next highest was 3.5, and the third was 2.65.I mentioned a couple weeks ago the 10 year Treasury was hitting record lows and that I was going to refinance some property. I just got 2.65% fixed. Fricking awesome.Might be a good time to buy into the market, it's definitely time to refinance a mortgage.
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I'm working on a refi also, hoping to go from 3.85 to mid 2s. Great time to do it.
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It definitely pays to shop around.
I haven't locked yet, could have locked last week at 2.75 but I held off.
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Don't wait too long. There is a long queue.
I'm doing the same. VA loan. Most of it is done online with e-signatures, but I had a few forms which had to be ink signed and faxed.Lenders are being inundated right now. It is taking several days, up to a week, for them to process loans. You should get started now. I am in what is called a "floating lock" until the paperwork has been processed, which should be in two or three days. I started the process last week when the rate was 2.9. Since I am in a floating lock, it is now 2.65. At least, that's where it was Friday afternoon. It might be even better today.It's weird. I got three quotes from three different financial institutions. The highest was 4.5, the next highest was 3.5, and the third was 2.65.I mentioned a couple weeks ago the 10 year Treasury was hitting record lows and that I was going to refinance some property. I just got 2.65% fixed. Fricking awesome.
I'm working on a refi also, hoping to go from 3.85 to mid 2s. Great time to do it.
.
It definitely pays to shop around.
I haven't locked yet, could have locked last week at 2.75 but I held off.
.
Don't wait too long. There is a long queue.
Been there, all the paperwork is in, I'm not doing a conventional refi, I'm doing a VA streamline, not near as much paperwork.
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What I worry about are derivatives which amplify losses. There could be a hedge fund or bank out there which is overleveraged and on the brink of shocking the entire system.How you feeling now?It's looking like it is going to end up somewhere between 700 points to 1,200 points up over yesterday as more and more people realize that Left Stream Media tried to create a hoax panic and some people fell for it.
This too shall pass.
.
Like Warren Buffet said, “You only find out who is swimming naked when the tide goes out.”
This will pass, but when? If I was pushing retirement age, I'd be very worried.
And if we tip into a recession, jobs get lost. Homes get lost. Businesses collapse.
Jobs are definitely going to be lost with the drop in the price of oil.
I'm not so flippant with "this too shall pass".
The pocket from which they move goes under. Just ask Lehman or Bear Stearns or LTCM.What I worry about are derivatives which amplify losses. There could be a hedge fund or bank out there which is overleveraged and on the brink of shocking the entire system.How you feeling now?It's looking like it is going to end up somewhere between 700 points to 1,200 points up over yesterday as more and more people realize that Left Stream Media tried to create a hoax panic and some people fell for it.
This too shall pass.
.
Like Warren Buffet said, “You only find out who is swimming naked when the tide goes out.”
This will pass, but when? If I was pushing retirement age, I'd be very worried.
And if we tip into a recession, jobs get lost. Homes get lost. Businesses collapse.
Jobs are definitely going to be lost with the drop in the price of oil.
I'm not so flippant with "this too shall pass".
What I worry about are derivatives which amplify losses.
But they don't. They only move them from one pocket to another.
The pocket from which they move goes under. Just ask Lehman or Bear Stearns or LTCM.What I worry about are derivatives which amplify losses. There could be a hedge fund or bank out there which is overleveraged and on the brink of shocking the entire system.How you feeling now?It's looking like it is going to end up somewhere between 700 points to 1,200 points up over yesterday as more and more people realize that Left Stream Media tried to create a hoax panic and some people fell for it.
This too shall pass.
.
Like Warren Buffet said, “You only find out who is swimming naked when the tide goes out.”
This will pass, but when? If I was pushing retirement age, I'd be very worried.
And if we tip into a recession, jobs get lost. Homes get lost. Businesses collapse.
Jobs are definitely going to be lost with the drop in the price of oil.
I'm not so flippant with "this too shall pass".
What I worry about are derivatives which amplify losses.
But they don't. They only move them from one pocket to another.
What I worry about are derivatives which amplify losses. There could be a hedge fund or bank out there which is overleveraged and on the brink of shocking the entire system.How you feeling now?It's looking like it is going to end up somewhere between 700 points to 1,200 points up over yesterday as more and more people realize that Left Stream Media tried to create a hoax panic and some people fell for it.
This too shall pass.
.
Like Warren Buffet said, “You only find out who is swimming naked when the tide goes out.”
This will pass, but when? If I was pushing retirement age, I'd be very worried.
And if we tip into a recession, jobs get lost. Homes get lost. Businesses collapse.
Jobs are definitely going to be lost with the drop in the price of oil.
I'm not so flippant with "this too shall pass".
Lehman financed derivatives using massive leverage.The pocket from which they move goes under. Just ask Lehman or Bear Stearns or LTCM.What I worry about are derivatives which amplify losses. There could be a hedge fund or bank out there which is overleveraged and on the brink of shocking the entire system.
Like Warren Buffet said, “You only find out who is swimming naked when the tide goes out.”
This will pass, but when? If I was pushing retirement age, I'd be very worried.
And if we tip into a recession, jobs get lost. Homes get lost. Businesses collapse.
Jobs are definitely going to be lost with the drop in the price of oil.
I'm not so flippant with "this too shall pass".
What I worry about are derivatives which amplify losses.
But they don't. They only move them from one pocket to another.
The pocket from which they move goes under.
Sometimes.
Just ask Lehman or Bear Stearns
They went under because they financed a huge bond position, which went down in value, with overnight borrowing, which they couldn't roll over, Nothing to do with derivatives.
Exactly as isaid. Thank you.Post the proof you are right.Post the proof I'm wrong.
The government is responsible for the general welfare, dumbass.Please cite for us the Article and Section in the U.S. Constitution that makes healthcare the responsibility of government.Well, it dropped another 250 points today. If the virus keeps spreading and people keep dying without any effective response from the government, expect next week to be a bloodbath on the market as well.
Fucking imbecile.
Lehman financed derivatives using massive leverage.The pocket from which they move goes under. Just ask Lehman or Bear Stearns or LTCM.What I worry about are derivatives which amplify losses. There could be a hedge fund or bank out there which is overleveraged and on the brink of shocking the entire system.This too shall pass.
.
Like Warren Buffet said, “You only find out who is swimming naked when the tide goes out.”
This will pass, but when? If I was pushing retirement age, I'd be very worried.
And if we tip into a recession, jobs get lost. Homes get lost. Businesses collapse.
Jobs are definitely going to be lost with the drop in the price of oil.
I'm not so flippant with "this too shall pass".
What I worry about are derivatives which amplify losses.
But they don't. They only move them from one pocket to another.
The pocket from which they move goes under.
Sometimes.
Just ask Lehman or Bear Stearns
They went under because they financed a huge bond position, which went down in value, with overnight borrowing, which they couldn't roll over, Nothing to do with derivatives.
The collapse of 2008 was greatly amplifed by leveraged CDS.
LTCM went under because of arbitrage bets on bond yield spreads around the world which ended up having a correlation of 1 when they all went sour. LTCM was leveraged 100 to 1.
Exactly as isaid. Thank you.Post the proof you are right.Post the proof I'm wrong.
Lehman financed derivatives using massive leverage.The pocket from which they move goes under. Just ask Lehman or Bear Stearns or LTCM.What I worry about are derivatives which amplify losses. There could be a hedge fund or bank out there which is overleveraged and on the brink of shocking the entire system.
Like Warren Buffet said, “You only find out who is swimming naked when the tide goes out.”
This will pass, but when? If I was pushing retirement age, I'd be very worried.
And if we tip into a recession, jobs get lost. Homes get lost. Businesses collapse.
Jobs are definitely going to be lost with the drop in the price of oil.
I'm not so flippant with "this too shall pass".
What I worry about are derivatives which amplify losses.
But they don't. They only move them from one pocket to another.
The pocket from which they move goes under.
Sometimes.
Just ask Lehman or Bear Stearns
They went under because they financed a huge bond position, which went down in value, with overnight borrowing, which they couldn't roll over, Nothing to do with derivatives.
The collapse of 2008 was greatly amplifed by leveraged CDS.
LTCM went under because of arbitrage bets on bond yield spreads around the world which ended up having a correlation of 1 when they all went sour. LTCM was leveraged 100 to 1.
Lehman financed derivatives using massive leverage.
Link?
Same link as above:And another link that their derivative portfolio played more than a minor part in their collapse.
The collapse of 2008 was greatly amplifed by leveraged CDS.
Not really.
LTCM was leveraged 100 to 1.
I don't think it ever got that high.
Lehman financed derivatives using massive leverage.The pocket from which they move goes under. Just ask Lehman or Bear Stearns or LTCM.What I worry about are derivatives which amplify losses.
But they don't. They only move them from one pocket to another.
The pocket from which they move goes under.
Sometimes.
Just ask Lehman or Bear Stearns
They went under because they financed a huge bond position, which went down in value, with overnight borrowing, which they couldn't roll over, Nothing to do with derivatives.
The collapse of 2008 was greatly amplifed by leveraged CDS.
LTCM went under because of arbitrage bets on bond yield spreads around the world which ended up having a correlation of 1 when they all went sour. LTCM was leveraged 100 to 1.
Lehman financed derivatives using massive leverage.
Link?
Bankruptcy of Lehman Brothers - Wikipedia
Lehman borrowed significant amounts to fund its investing in the years leading to its bankruptcy in 2008, a process known as leveraging or gearing. A significant portion of this investment was in housing-related assets, making it vulnerable to a downturn in that market. One measure of this risk-taking was its leverage ratio, a measure of the ratio of assets to owners equity, which increased from approximately 24:1 in 2003 to 31:1 by 2007.
Same link as above:And another link that their derivative portfolio played more than a minor part in their collapse.
In 2008, Lehman faced an unprecedented loss due to the continuing subprime mortgage crisis. Lehman's loss resulted from having held onto large positions in subprime and other lower-rated mortgage tranches when securitizing the underlying mortgages.
Those "tranches" were from CDOs.
Collateralized Debt Obligation (CDO) Definition
A collateralized debt obligation (CDO) is a complex structured finance product that is backed by a pool of loans and other assets and sold to institutional investors. A CDO is a particular type of derivative because, as its name implies, its value is derived from another underlying asset. These assets become the collateral if the loan defaults.
The collapse of 2008 was greatly amplifed by leveraged CDS.
Not really.
Yes, really.
Credit Default Swap (CDS) - A Major Player in the 2008 Financial Crisis
Before the financial crisis of 2008, there was more money invested in credit default swaps than in other pools. The value of credit default swaps stood at $45 trillion compared to $22 trillion invested in the stock market, $7.1 trillion in mortgages and $4.4 trillion in U.S. Treasury. In mid-2010, the value of outstanding CDS was $26.3 trillion.
Many investment banks were involved, but the biggest casualty was Lehman Brothers investment bank, which owed $600 billion in debt, out of which $400 billion was covered by CDS.
In other words, the bulk of Lehman's collapse was due to CDS, which are derivatives.
LTCM was leveraged 100 to 1.
I don't think it ever got that high.
It got much higher than that.
Long-Term Capital Management - Wikipedia
LTCM was essentially betting that the share prices of Royal Dutch and Shell would converge because in their belief the present value of the future cashflows of the two securities should be similar. This might have happened in the long run, but due to its losses on other positions, LTCM had to unwind its position in Royal Dutch Shell. Lowenstein reports that the premium of Royal Dutch had increased to about 22%, which implies that LTCM incurred a large loss on this arbitrage strategy. LTCM lost $286 million in equity pairs trading and more than half of this loss is accounted for by the Royal Dutch Shell trade.[26]
The company, which had historically earned annualised compounded returns of almost 40% up to this point, experienced a flight to liquidity. In the first three weeks of September, LTCM's equity tumbled from $2.3 billion at the start of the month to just $400 million by September 25. With liabilities still over $100 billion, this translated to an effective leverage ratio of more than 250-to-1.