Short Sales gaining on REO sales as “Change is Afoot”

April 27, 2012 by · Leave a Comment
Filed under: REO News 

Interesting data and charts.

Mortgage News Daily – RealtyTrac said on Thursday, releasing new data which indicate, based on January’s numbers, that pre-foreclosure sales (most of which are so-called short sales) in the first quarter were the highest since the first quarter of 2009.

In theory, the company said, a short sale has long been viewed as an “elegant solution” to the nation’s foreclosure problem.  A short sale, in which the lender accepts less money than it is owed, provides a win-win-win for the buyer, bank, and even the seller.  “The buyer purchases a house they want at a price they can afford, the bank gets the best price for its distressed asset, and the seller walks away from a mountain of debt, free to get a fresh start.”

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Short sellers say stock market crisis during ban proves rout not their fault

October 7, 2008 by · Leave a Comment
Filed under: Stock Market News 

This is true, we have had the most volatility in the market during the times when we have had a ban on the stocks that have lost the most value overall, which is the financial sector.  People don’t seem to understand that short sellers actually help keep the market honest and closer to the stocks true value.  I hope they let the ban expired so we can get through this process quickly and then we can set a bottom and start building from there.  Dow 7,000ish and S&P 7-800 is what I expect unless things get real bad and then it is anyone’s call.

News:

A temporary U.S. ban on short selling has failed to stop the relentless sell-off of financial stocks, proving that the trading strategy is not to blame for the crisis shaking Wall Street, two veteran short sellers said on Tuesday.

 

James Chanos and William Ackman also said it wasn’t clear that when the ban expires at 11:59 p.m. Eastern time on Wednesday, how many institutional investors would lend their shares out to short sellers.

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SEC bans short selling on all financial stocks until Oct 2nd

September 19, 2008 by · Leave a Comment
Filed under: Legal News 

Operation “Calm the Market” is in effect. By that is means as long as the market continues to rise then it is okay but when it falls we have to prevent that. This seems similar to real estate as well, when price continue to climb that is good but when they correct by falling then we need to prop it up. So the lesson to take from all this is “If you going to get your cock up make sure its an enormous cock up so the government will bail you out”. Our representatives do get an “A for effort” though, they are trying to stabilize this mess and time will tell to see if it is futile. If the U.S. government is going to really purchase all these “bad loans” from the financial sector then I will be writing a eulogy for the U.S. dollar.

Release:

U.S. market regulators issued an emergency ban on the short-selling of financial stocks on Friday, igniting big rallies in the sector that has been targeted by sellers as the credit crisis gathered pace.

The U.S. ban came a day after the U.K. Financial Services Authority imposed its own temporary four-month ban on short-selling of financial stocks. National market watchdogs in France, Portugal, and Ireland took similar steps.

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