Saturday, April 09, 2005

Another Stock Is Hit In The Mortgage Sector

Another mortgage banking/financial holding company, R&G Financial Corporation (RGF), is seeing a big sell-off of its stock. Like Doral Financial, RGF is based in Puerto Rico.

5 Comments:

At 1:43 PM, Anonymous Anonymous said...

I think the hedge funds are taking a run at some of these stocks. They are thinly traded and not well supported, so they short them. And they fall.

Just wait: it is going to get much, much worse.

 
At 2:46 PM, Anonymous Anonymous said...

you are probably right. hedge funds had a bad quarter. got to justify those fees.

 
At 4:38 PM, Anonymous Anonymous said...

Hi Ben

Out of curiosity, I did a google on "credit bubble", and this very interesting article came up:

U.S. economic collapse looming for 2005

by William Engdahl

http://www.proliberty.com/observer/20040808.htm

an excerpt: A trapped Fed

Ever since raising rates, Greenspan has calmed nervous markets by stating that future rises will be ever so gradual. In other words: don't worry, speculators. But if he is to keep the confidence of the large bond markets, he must convince them that he is still vigilant against inflation. That is tough when prices for everything from copper to oil to lumber to soybeans and scrap steel are rising from 50% to 110% over recent months. His only anti-inflation tool is higher interest rates, or promise of same. The longer he fails to raise rates as prices rise, the greater the risk of a dollar crisis, as foreign investors fear the worst, namely that the U.S. economy is in far worse shape than officials admit. The Fed is in a trap.

Higher interest rates threaten to explode the $3 trillion dollar home mortgage debt bubble, where home values are estimated to be at least 20% overvalued nationally.

 
At 5:12 PM, Blogger Ben Jones said...

thanks for the link anon..ben

 
At 5:50 PM, Blogger John Law said...

greenspan is lucky that they can just doctor the CPI numbers!

 

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