BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[MGIC (MTG): Mortgage Turnaround?]]>http://www.bloggingstocks.com/2011/01/19/mgic-mtg-mortgage-turnaround/http://www.bloggingstocks.com/2011/01/19/mgic-mtg-mortgage-turnaround/http://www.bloggingstocks.com/2011/01/19/mgic-mtg-mortgage-turnaround/#commentsFiled under: , , ,

MGIC (MTG) logo"MGIC (MTG) is the leading U.S. private mortgage insurer; in fact, the company claims to have founded the mortgage insurance industry in 1957," notes turnaround specialist George Putnam.

The editor of The Turnaround Letter explains, "After many years of relatively steady earnings, MGIC was forced to sharply increase its reserves beginning in 2007 as more homeowners began defaulting on their mortgages.

"As a result, the company posted large losses in each of the last three years, which reduced its capital to a precarious level. Almost all of the other mortgage insurers suffered similar fates, with several competitors being forced out of business.

Continue reading MGIC (MTG): Mortgage Turnaround?

MGIC (MTG): Mortgage Turnaround? originally appeared on BloggingStocks on Wed, 19 Jan 2011 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking stocksfeaturedfinance stocksfinancial stocksgeorge putnamhousing stocksmgicMTGsteven halpernthestockadvisors.comturnaround letterturnaround stocksWed, 19 Jan 2011 10:30:00 EST<![CDATA[Closing Bell: Materials Lead Market Higher (IBM, TXN, MTG, MNKD, RSH, SCCO)]]>http://www.bloggingstocks.com/2010/07/20/closing-bell-materials-lead-market-higher-ibm-txn-mtg-mnkd/http://www.bloggingstocks.com/2010/07/20/closing-bell-materials-lead-market-higher-ibm-txn-mtg-mnkd/http://www.bloggingstocks.com/2010/07/20/closing-bell-materials-lead-market-higher-ibm-txn-mtg-mnkd/#commentsFiled under: , ,

Stocks initially had a hard time finding real direction today. Stocks started out weak with top-line revenue concerns but then rallied with materials. Even Canada's raising its overnight interest rates did not materialize any "rate hike fears" for the immediate horizon.

Here were today's unofficial closing bell levels:

Dow 10,229.96 +75.53 (0.74%)
S&P 500 1,083.48 +12.23 (1.14%)
Nasdaq 2,222.49 +24.26 (1.10%)

Continue reading Closing Bell: Materials Lead Market Higher (IBM, TXN, MTG, MNKD, RSH, SCCO)

Closing Bell: Materials Lead Market Higher (IBM, TXN, MTG, MNKD, RSH, SCCO) originally appeared on BloggingStocks on Tue, 20 Jul 2010 16:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>afrezzaIBMMNKDMTGRSHSCCOTue, 20 Jul 2010 16:20:00 EST<![CDATA[Cramer on BloggingStocks: Here comes the death of the bearish funds ]]>http://www.bloggingstocks.com/2009/09/30/cramer-on-bloggingstocks-here-comes-the-death-of-the-bearish-fu/http://www.bloggingstocks.com/2009/09/30/cramer-on-bloggingstocks-here-comes-the-death-of-the-bearish-fu/http://www.bloggingstocks.com/2009/09/30/cramer-on-bloggingstocks-here-comes-the-death-of-the-bearish-fu/#commentsFiled under: , , , , , , , ,

TheStreet.com's Jim Cramer says this year will see the mirror image of last year, when redemptions ended the game for many managers.

One year ago today, a quarter ended that put hundreds of bullish hedge funds out of business. Today, a quarter ends that will put hundreds of bearish hedge funds out of business.

Oh, sure, last year some of the bulls were able to stumble through the fourth quarter, but October was a horror show and they ended up getting huge redemption letters and spending the rest of 2008 selling into the strength of the rally to return capital to investors and lock in losses.

Continue reading Cramer on BloggingStocks: Here comes the death of the bearish funds

Cramer on BloggingStocks: Here comes the death of the bearish funds originally appeared on BloggingStocks on Wed, 30 Sep 2009 09:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>featuredfrejim cramerJimCramermtgWed, 30 Sep 2009 09:50:00 EST<![CDATA[Worst 10-year performers: MGIC Investment abandons merger as mortgage losses mount]]>http://www.bloggingstocks.com/2008/08/01/worst-10-year-performers-mgic-investment-abandons-merger-as-mor/http://www.bloggingstocks.com/2008/08/01/worst-10-year-performers-mgic-investment-abandons-merger-as-mor/http://www.bloggingstocks.com/2008/08/01/worst-10-year-performers-mgic-investment-abandons-merger-as-mor/#commentsFiled under: , , ,

In this series, we take a look at the 25 stocks in the S&P 500 Index (SPX) that have turned in the worst performance during the past decade -- what went wrong, and what happens next.

I'll give you just one hint at the nature of the problems MGIC Investment Corp. (NYSE: MTG) is facing: MGIC stands for Mortgage Guaranty Insurance Corporation. In other words, things were going just fine for the Milwaukee-based firm until about, oh, mid-2007, when the slime known as subprime hit the proverbial fan.

What went wrong? At number 4 on our list of SPX stragglers, MTG lost 89% of its value from June 30, 1998 through June 30, 2008. From its July 2004 peak at $78.95, the stock is down 93%, and is now trading near all-time low territory.

In the first quarter of 2007, it was business as usual for MTG. The company announced plans to acquire its sector peer, Radian Group (NYSE: RDN), for $4.9 billion in the stock. The merger would have created a massive mortgage giant with about $15 billion in assets. Unfortunately, the deal was never consummated.

Continue reading Worst 10-year performers: MGIC Investment abandons merger as mortgage losses mount

Worst 10-year performers: MGIC Investment abandons merger as mortgage losses mount originally appeared on BloggingStocks on Fri, 01 Aug 2008 06:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>housingMGIC InvestmentMgicInvestmentmortgageMTGsubprimeFri, 01 Aug 2008 06:00:00 EST<![CDATA[Cramer on BloggingStocks: The breadth of the danger is staggering]]>http://www.bloggingstocks.com/2008/07/15/cramer-on-bloggingstocks-the-breadth-of-the-danger-is-staggerin/http://www.bloggingstocks.com/2008/07/15/cramer-on-bloggingstocks-the-breadth-of-the-danger-is-staggerin/http://www.bloggingstocks.com/2008/07/15/cramer-on-bloggingstocks-the-breadth-of-the-danger-is-staggerin/#commentsFiled under: , , , , , , , , , , , , , , , , , , , , , , , ,

TheStreet.com's Jim Cramer says our problems are so widespread, he sees lots more IndyMacs before we're out.

You don't need me to tell you it's awful out there. You don't need me to tell you that there's no quick fix for any of these things. But what might help you understand why it feels so bad this time is that I have never, in my career, seen so many companies go off track at the same time. This is one unbelievable moment, and it is made more horrible by the day as companies' stocks just get pummeled, causing people to then question the very viability of the companies involved.

First, obviously, are Fannie Mae (NYSE: FNM) (Cramer's Take) and Freddie Mac (NYSE: FRE) (Cramer's Take). We don't know what will happen, but we do know that their futures are much darker than their pasts. Their best hope: a Democrat becomes president and shows the usual love to both. But as investments, they are pretty much perma-losers going forward. The losses are that heavy. Yes, it is true that two years from now they will be better, but will the government let them limp through to that? View them as calls on a Democratic win.

We all know that Citigroup (NYSE: C) (Cramer's Take), Wachovia (NYSE: WB) (Cramer's Take), Washington Mutual (NYSE: WM) (Cramer's Take) and National City (NYSE: NCC) (Cramer's Take) are in trouble. Bank of America (NYSE: BAC) (Cramer's Take) says it isn't in trouble, but obviously the market doesn't believe management because the stock failed to rally when it said its dividend was safe. Any short-selling hedge fund could hire 30 actors and have them line up at a Washington Mutual or two and get a bank run going. Then we would have to hear about a "hasty" Treasury department plan to bail out WM. Hasty? How can these guys not see it coming?

Continue reading Cramer on BloggingStocks: The breadth of the danger is staggering

Cramer on BloggingStocks: The breadth of the danger is staggering originally appeared on BloggingStocks on Tue, 15 Jul 2008 08:56:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>abkaigamdanbacbbtcchrschscmacnbdhiffeaturedfhnfitbfnmfregmgnwhbanhovimbjim cramerJimCramerkeykrxlehlenmmbimermimtgnccphmpmirfshldsovstiubsvcwbwmxlzionTue, 15 Jul 2008 08:56:00 EST<![CDATA[Cramer on BloggingStocks: The mortgage insurers created this mess]]>http://www.bloggingstocks.com/2008/07/11/cramer-on-bloggingstocks-the-mortgage-insurers-created-this-mes/http://www.bloggingstocks.com/2008/07/11/cramer-on-bloggingstocks-the-mortgage-insurers-created-this-mes/http://www.bloggingstocks.com/2008/07/11/cramer-on-bloggingstocks-the-mortgage-insurers-created-this-mes/#commentsFiled under: , , , , , , , , ,

TheStreet.com's Jim Cramer says Fannie and Freddie aren't the true culprits here.

The blowhards and bluff artists and the Gang of Four -- Ambac (NYSE: ABK) (Cramer's Take), MBIA (NYSE: MBI) (Cramer's Take), MGIC (NYSE: MTG) (Cramer's Take) and PMI (NYSE: PMI) (Cramer's Take) -- truly have blood on their hands for this moment. So do the ratings agencies, the mortgage insurers and the salespeople who packaged undocumented loans and pushed buying homes with no money down.

The whole apparatus stinks and we are now seeing the unwinding, but I think that the false assurances created by the Gang of Four and their insistence to not worry made everyone way too complacent. Their glib promises as well as the incredibly lax work of the ratings agencies, S&P and Moody's, enabled the whole edifice to be propped up.

And once it was clear to them that they needed more capital, they chose to forgo the window and attack the shorts. Had they raised the capital they needed and had the ratings agencies said they can't bless any more of this junk, we might have never been in this spot.

Continue reading Cramer on BloggingStocks: The mortgage insurers created this mess

Cramer on BloggingStocks: The mortgage insurers created this mess originally appeared on BloggingStocks on Fri, 11 Jul 2008 08:38:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>abkambacbacfannie maeFannieMaefeaturedfnmfrefreddie macFreddieMacinthenewsjim cramerJimCramermbimbiamgicmortgage insurancemortgage insurersMortgageInsuranceMortgageInsurersmortgagesmtgpmiwmFri, 11 Jul 2008 08:38:00 EST<![CDATA[Cramer on BloggingStocks: Beware the financial dirty dozen ]]>http://www.bloggingstocks.com/2008/07/03/cramer-on-bloggingstocks-beware-the-financial-dirty-dozen/http://www.bloggingstocks.com/2008/07/03/cramer-on-bloggingstocks-beware-the-financial-dirty-dozen/http://www.bloggingstocks.com/2008/07/03/cramer-on-bloggingstocks-beware-the-financial-dirty-dozen/#commentsFiled under: , , , , , , , , , , , , , ,

TheStreet.com's Jim Cramer says he has no confidence in these hated names, and neither should you.

The financials are flying -- there are finally bids for most of them underneath. Many, including Lehman (NYSE: LEH) (Cramer's Take), are running. What a great time to put the negative cards on the table and put the negatives in perspective. That's right, let's look at the financial Achilles' heels. What could go wrong? In other words, here's the companion piece to Doug Kass' positive conversion. Here's what I am worried about even as Doug thinks everyone's too worried and the bottom is being put in.

To get started, let's look at what's not causing the endless declines in the stocks -- don't worry, we will get to the financial dirty dozen when I finish this preamble.

First, it ain't earnings. Earnings aren't going to be that great. But that's why the S&P is at 14 times. It can go to 12 or 11, or most likely stays at 13-14, but the E goes down (earnings).

Second, it ain't oil. The stocks sensitive to the increase in oil have room to go down, but the price of oil is being factored in slowly but surely.

Third, it isn't inflation or recession. Those two are being baked in each day.

Continue reading Cramer on BloggingStocks: Beware the financial dirty dozen

Cramer on BloggingStocks: Beware the financial dirty dozen originally appeared on BloggingStocks on Thu, 03 Jul 2008 09:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>abkaigbacblkccitffeaturedfnmfregmjim cramerJimCramerlehmbimermtgpmiwbwmThu, 03 Jul 2008 09:00:00 EST<![CDATA[Cramer on BloggingStocks: Deep in the heart of defaults ]]>http://www.bloggingstocks.com/2008/05/30/cramer-on-bloggingstocks-deep-in-the-heart-of-defaults/http://www.bloggingstocks.com/2008/05/30/cramer-on-bloggingstocks-deep-in-the-heart-of-defaults/http://www.bloggingstocks.com/2008/05/30/cramer-on-bloggingstocks-deep-in-the-heart-of-defaults/#commentsFiled under: , , , , , , , ,

TheStreet.com's Jim Cramer says the mortgage problem is in the process of cresting, which is why the stocks have largely bottomed.

We are in the heart of default country, and we knew we would be. This is the toughest moment. You need to go back and look at the calendar to realize the astonishing acceleration in defaults. It's simple: This moment two years ago is when the underwriting standards were the lowest, and this is the moment when the defaults will be the highest because the loans are resetting at high levels and most of the lenders, lenders like Countrywide (NYSE: CFC) (Cramer's Take), are more interested in getting as much out of a borrower as possible before kicking him out than working out the loan.

Think about it.

In the second quarter of 2006, the housing industry was going strong. We were in the 7-million-homes-changing-hands mode, and the vast majority of those homes required little money down, with home equity loans being taken out immediately to pay whatever little interest was being charged. These were the moments of the ultimate no-doc-high-fee loans by New Century Financial, Ameriquest, Resmed (Ditech), American Home Mortgage, Novastar, and of course, Countrywide. This was when the homebuilders' mortgage arms lent the most terribly.

Continue reading Cramer on BloggingStocks: Deep in the heart of defaults

Cramer on BloggingStocks: Deep in the heart of defaults originally appeared on BloggingStocks on Fri, 30 May 2008 09:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>abkambaccfcdhidr hortonDrHortonfeaturedhousinghovhovanianjim cramerJimCramerkb homeskbhKbHomeslenlennarmbimbiamgicmortgagesmtgphmpmipulte homesPulteHomestoltoll brothersTollBrothersFri, 30 May 2008 09:00:00 EST<![CDATA[Cramer on BloggingStocks: Pools of capital keep retelling the credit story ]]>http://www.bloggingstocks.com/2008/04/24/cramer-on-bloggingstocks-pools-of-capital-keep-retelling-the-cr/http://www.bloggingstocks.com/2008/04/24/cramer-on-bloggingstocks-pools-of-capital-keep-retelling-the-cr/http://www.bloggingstocks.com/2008/04/24/cramer-on-bloggingstocks-pools-of-capital-keep-retelling-the-cr/#commentsFiled under: , , , , , , , , , , , ,

TheStreet.com's Jim Cramer says we know how it'll play out. Besides, there's money to be made elsewhere.

Nobody's dissing the credit crisis. We all see it. We know when it is back. We know that the write-offs for the banks and brokers and Fannie (NYSE: FNM) (Cramer's Take) and Freddie (NYSE: FRE) (Cramer's Take) will be gigantic if and when the Gang of Four (Ambac (NYSE: ABK) (Cramer's Take), MGIC (NYSE: MTG) (Cramer's Take), MBIA (NYSE: MBI) (Cramer's Take), PMI (NYSE: PMI) (Cramer's Take)) finally chokes to death. But we also know that Boeing (NYSE: BA) (Cramer's Take) and Honeywell (NYSE: HON) (Cramer's Take) and Schlumberger (NYSE: SLB) (Cramer's Take) and Lockheed (NYSE: LMT) (Cramer's Take) and all of the other stocks that are on the move, not to mention anything oil and gas, just aren't that levered to the crisis. I know that is heresy for many of you. How could the crisis not bring everything to its knees?

Because these companies are basically foreign companies. They are just not that important to the credit crumble.

Continue reading Cramer on BloggingStocks: Pools of capital keep retelling the credit story

Cramer on BloggingStocks: Pools of capital keep retelling the credit story originally appeared on BloggingStocks on Thu, 24 Apr 2008 09:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>abkbaccredit crisisCreditCrisisfeaturedfnmfrehonjimjim cramerJimCramerlehlmtmbimermtgpmislbThu, 24 Apr 2008 09:45:00 EST<![CDATA[Analyst upgrades: Ford, Imperial Tobacco, Schlumberger]]>http://www.bloggingstocks.com/2008/04/21/analyst-upgrades-f-ity-and-slb/http://www.bloggingstocks.com/2008/04/21/analyst-upgrades-f-ity-and-slb/http://www.bloggingstocks.com/2008/04/21/analyst-upgrades-f-ity-and-slb/#commentsFiled under: , , ,

MOST NOTEWORTHY: Ford, Imperial Tobacco and Schlumberger were today's noteworthy upgrades:

  • Soleil upgraded Ford Motor Company (NYSE: F) to Buy from Sell as they expect improved sentiment towards shares given new product launches, cost cutting efforts, North American capacity reductions, and better than expected performance on the cash side.
  • Imperial Tobacco Group Plc (NYSE: ITY) was raised to Buy from Hold at Citigroup to reflect FX benefits and pricing in continental Europe.
  • Morgan Stanley upgraded shares of Schlumberger Limited (NYSE: SLB) to Overweight from Equal Weight following the company's Q1 results, as they expect consensus estimates to move higher over the coming quarters.

OTHER UPGRADES:

Analyst upgrades: Ford, Imperial Tobacco, Schlumberger originally appeared on BloggingStocks on Mon, 21 Apr 2008 10:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>FFord MotorFordMotorHCSGHealthcare ServicesHealthcareServicesImperial TobaccoImperialTobaccointhenewsITYMGIC InvestmentMgicInvestmentMTGSchlumbergerSLBWilmington TrustWilmingtonTrustWLMon, 21 Apr 2008 10:40:00 EST<![CDATA[Analyst initiations: Mortgage insurers, THOR and ELY]]>http://www.bloggingstocks.com/2008/04/10/analyst-initiations-mortgage-insurers-thor-and-ely/http://www.bloggingstocks.com/2008/04/10/analyst-initiations-mortgage-insurers-thor-and-ely/http://www.bloggingstocks.com/2008/04/10/analyst-initiations-mortgage-insurers-thor-and-ely/#commentsFiled under: , ,

MOST NOTEWORTHY: Mortgage Insurers, Thoratec Laboratories and Callaway Golf were today's noteworthy initiations:
  • Keefe Bruyette resumed coverage of Old Republic (NYSE:ORI), MGIC Investment (NYSE:MTG), PMI Group (NYSE:PMI) and Radian (NYSE:RDN) with Market Perform ratings and a $16 target, $13 target, $7 target and $6.50 target, respectively, as they expect increased capital needs to generate operational headwinds in the near-term.
  • JMP Securities expects FDA approval of Thoratec's (NASDAQ:THOR) next generation HeartMate II VAD any day now and for the company to meet/beat 2008 sales guidance. Shares were started with an Outperform rating and $20 target.
  • Callaway Golf (NYSE:ELY) was assumed at Stephens with an Overweight rating and $19 target. The firm is positive on Callaway's leadership position, strong balance sheet, new products and international opportunity.
OTHER INITIATIONS:

Analyst initiations: Mortgage insurers, THOR and ELY originally appeared on BloggingStocks on Thu, 10 Apr 2008 11:25:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>analystbancshares of floridaBancsharesOfFloridaboflcallawaydcaidialysis corp of americaDialysisCorpOfAmericaelyinitiationintuitive surgicalIntuitiveSurgicalisrgmgicmortgage insurerMortgageInsurermtgold republicOldRepublicoripmiradianrdnthorthoratecThu, 10 Apr 2008 11:25:00 EST<![CDATA[Cramer on BloggingStocks: I'll keep banging the uptick drum]]>http://www.bloggingstocks.com/2008/04/01/cramer-on-bloggingstocks-ill-keep-banging-the-uptick-drum/http://www.bloggingstocks.com/2008/04/01/cramer-on-bloggingstocks-ill-keep-banging-the-uptick-drum/http://www.bloggingstocks.com/2008/04/01/cramer-on-bloggingstocks-ill-keep-banging-the-uptick-drum/#commentsFiled under: , , , , , , , ,

TheStreet.com's Jim Cramer says you can call him all the names in the book, but he's right, and the shorts know it.

It was a cause I didn't want to take up. I didn't want to take it up because I knew the short-sellers would paint me as a naïve, clueless defender of the bull, and the long owners wouldn't really understand the idiosyncrasies of the subject. It was a cause I knew the brokers would never defend because their best business that is left is prime brokerage, and they need giant hedge funds to trade with them and can't risk alienating them.

I am talking about the uptick rule, the 70-year-old rule put in by the SEC to stop the process of "raiding" stocks, meaning sending them down by knocking all bids down underneath to where panic could and would ensue.

Today's typical. The Journal breaks its seeming 10-year embargo on mentioning me or my show with a piece that basically says I have no idea what I am talking about and am a fool to bring it up. It quotes James Bianco, from Bianco Research right after me saying, "Anyone who thinks the removal of this rule is somehow causing havoc in the financial markets is hopelessly lost in the bark of one tree and may never be able to see the forest." He then goes on to say, "To suggest that the removal of this rule is causing the markets to go down is to loudly announce, "I don't understand the credit crisis and I am incapable of ever understanding it.'"

Continue reading Cramer on BloggingStocks: I'll keep banging the uptick drum

Cramer on BloggingStocks: I'll keep banging the uptick drum originally appeared on BloggingStocks on Tue, 01 Apr 2008 09:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>abkbscfeaturedhcbkjim cramerJimCramerjpmlehmbimermtgpmisbtmawbwmTue, 01 Apr 2008 09:00:00 EST<![CDATA[Pre-market movers: YHOO, MTG ...]]>http://www.bloggingstocks.com/2008/03/25/pre-market-movers-yhoo-mtg/http://www.bloggingstocks.com/2008/03/25/pre-market-movers-yhoo-mtg/http://www.bloggingstocks.com/2008/03/25/pre-market-movers-yhoo-mtg/#commentsFiled under: , ,

Yahoo! (NASDAQ: YHOO) is up over 3% on a brokerage upgrade.

Hoku (NASDAQ: HOKU) is up 10% on a new contract to install its solar-power systems.

MGIC (NYSE: MTG) is off over 10% on a downgrade from Moody's.

Force Protection (NASDAQ: FRPT) is off 9% on a delisting notice from Nasdaq.

Shares may trade differently in the pre-market than they do in the regular session.

Douglas A. McIntyre is an editor at 247wallst.com.

Pre-market movers: YHOO, MTG ... originally appeared on BloggingStocks on Tue, 25 Mar 2008 08:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>FRPTHOKUMTGYHOOTue, 25 Mar 2008 08:01:00 EST<![CDATA[Cramer on BloggingStocks: Letting the market rule is a mistake]]>http://www.bloggingstocks.com/2008/02/14/cramer-on-bloggingstocks-letting-the-market-rule-is-a-mistake/http://www.bloggingstocks.com/2008/02/14/cramer-on-bloggingstocks-letting-the-market-rule-is-a-mistake/http://www.bloggingstocks.com/2008/02/14/cramer-on-bloggingstocks-letting-the-market-rule-is-a-mistake/#commentsFiled under: , ,

TheStreet.com's Jim Cramer says Bernanke's laissez-faire "policy" is at the heart of the mortgage crisis.

Spitzer's right. Believe me, much of what is happening in the bond market world in the insurance of bonds is about Darwin and laissez-faire and Ayn Rand. It is about letting the marketplace rule, and of letting capitalism run wild and roughshod. That's why I was so glad to hear Eliot Spitzer say as much on CNBC this morning.

Sure, many of the people who took these mortgages shouldn't have. But we have known since time began that you can fool people who aren't clever and who are greedy, so you have to protect them from themselves.

That's not what we did. Instead, we figured that the marketplace will take care of everything, that capitalism produces the best result.

Continue reading Cramer on BloggingStocks: Letting the market rule is a mistake

Cramer on BloggingStocks: Letting the market rule is a mistake originally appeared on BloggingStocks on Thu, 14 Feb 2008 09:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>abkambacEliot SpitzerEliotSpitzerfeaturedjim cramerJimCramermbimbiamgicmtgpmiThu, 14 Feb 2008 09:20:00 EST<![CDATA[Banks may need as much as $143 billion if bond insurers are downgraded]]>http://www.bloggingstocks.com/2008/01/25/banks-may-need-as-much-as-143-billion-if-bond-insurers-are-down/http://www.bloggingstocks.com/2008/01/25/banks-may-need-as-much-as-143-billion-if-bond-insurers-are-down/http://www.bloggingstocks.com/2008/01/25/banks-may-need-as-much-as-143-billion-if-bond-insurers-are-down/#commentsFiled under: , , ,

Barclays analysts say banks that obtained $72 billion in funding to replenish capital depleted by subprime-related losses may need another $143 billion in capital infusions if credit rating agencies downgrade bond insurers several levels, Bloomberg News reported Friday.

Barclays analyst Paul Fenner-Leitao Banks wrote in a research report published Friday that banks will need at least $22 billion if bonds covered by insurers MBIA (NYSE: MBI) and Ambac (NYSE: ABK) are cut one level from the current AAA and six times that if they are cut four levels, Bloomberg said. The capital amount is based on Barclays' estimates that the banks hold as much as 75% of the $820 billion of the structured securities guaranteed by bond insurers.

Meanwhile, the markets awaited word on New York Insurance Superintendent Eric Dinallo's meeting with banks on a bail-out package for bond insurers. Shares of some key bond insurers fell after Dinallo issued a statement that the negotiations were complicated and would take time, leading some in the market to doubt the New York agency's ability to marshal private resources for the initiative.

MBIA fell 79 cents to $13.61, Ambac gained 15 cents to $11.48, PMI Group (NYSE: PMI) rose 17 cents to $8.97, and MGIC Investment (NYSE: MTG) declined 6 cents to $16.68.

Continue reading Banks may need as much as $143 billion if bond insurers are downgraded

Banks may need as much as $143 billion if bond insurers are downgraded originally appeared on BloggingStocks on Fri, 25 Jan 2008 15:48:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ABKAmbacbond marketcredit marketsDinalloforeclosureshousinginthenewsMBIMBIAMGIC Investmentmortgage backed securitiesMTGNew York State Insurance DepartmentPMIPMI GroupPmiGroupsuprime mortgagesFri, 25 Jan 2008 15:48:00 EST<![CDATA[Economic growth, not inflation, is now Fed's main concern]]>http://www.bloggingstocks.com/2008/01/23/economic-growth-not-inflation-is-now-fed-s-main-concern/http://www.bloggingstocks.com/2008/01/23/economic-growth-not-inflation-is-now-fed-s-main-concern/http://www.bloggingstocks.com/2008/01/23/economic-growth-not-inflation-is-now-fed-s-main-concern/#commentsFiled under: , , ,

U.S. Federal Reserve Chairman now has more leeway to reduce interest rates further and quicker, after concluding that inflation concerns have subsided enough, Bloomberg News reported Wednesday.

However, economist David Wang told BloggingStocks Wednesday that although there's a tendency among some media outlets "to fixate on the Fed and interest rates," investors should concentrate on the multiplicity of tools at the Fed's disposal, as well as the global effort that Wang believes is necessary to prevent both a U.S. recession and a major slowdown in global growth.

"Look for the Fed's term auction facility to play just as important a role as the Fed's rate cuts in the months ahead," Wang said.

Last fall, the Fed established a term auction facility to provide short-term liquidity to banks. Bernanke has underscored that the term auction facility will remain open, "for as long as necessary."

Continue reading Economic growth, not inflation, is now Fed's main concern

Economic growth, not inflation, is now Fed's main concern originally appeared on BloggingStocks on Wed, 23 Jan 2008 14:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ABKAmbacBank of EnglandBernankeECBfeaturedGDPinterest ratesInterestRatesMBIMBIAMGICmonetary policyMTGPMIPMI GroupPmiGrouprecessionU.S. economyU.S. Federal ReserveWed, 23 Jan 2008 14:50:00 EST<![CDATA[Economists: Policymakers should focus on mortgage insurers, and fiscal stimulus]]>http://www.bloggingstocks.com/2008/01/22/economists-policymakers-should-focus-on-mortgage-insurers-and/http://www.bloggingstocks.com/2008/01/22/economists-policymakers-should-focus-on-mortgage-insurers-and/http://www.bloggingstocks.com/2008/01/22/economists-policymakers-should-focus-on-mortgage-insurers-and/#commentsFiled under: , , , ,

Given the U.S. market's 400-point sell-off in its initial minutes of trading, "a Dow close down just 300-points would look like a moral victory" according to one economist.

"All things considered, from a market standpoint, a 300-point down day is a relatively small consequence," economist David H. Wang told BloggingStocks Tuesday.

Amid the sell-off, the U.S. Federal Reserve, in an emergency monetary policy action, cut key interest rates Tuesday morning - - cutting both the Fed Funds rate and the discount rate by 75 basis points. The Fed cut the Fed Funds rate to 3.50% and the discount rate to 4.00%.

Larger matter: mortgage insurers

Of utmost importance, in Wang's interpretation, is the health and fate of mortgage insurers, primarily MBIA (NYSE: MBI), and Ambac (NYSE: ABK), but also PMI Group (NYSE: PMI), and MGIC (NYSE: MTG).

Wang said the mortgage insurers "form a critical foundation in mortgage insurance, and as a result, in the mortgage process."

"A failure by MBIA or Ambac would mean several banks would not receive insurance payments for mortgages that go into default, substantially reducing the asset values of those banks," Wang said. "That would prompt another market sell off, possibly resulting in a failure by one or more banks."

Continue reading Economists: Policymakers should focus on mortgage insurers, and fiscal stimulus

Economists: Policymakers should focus on mortgage insurers, and fiscal stimulus originally appeared on BloggingStocks on Tue, 22 Jan 2008 14:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ABKAmbacbond marketcredit marketsFannie MaeFedFNMFREFreddie MacGDPMBIMBIAMGICmortgagemortgagesMTGPMIPMI GroupPmiGrouprecessionsuprime mortgagesU.S. economyU.S. Federal ReserveU.S. TreasuryTue, 22 Jan 2008 14:00:00 EST<![CDATA[Why mortgage insurer MGIC fell 76%]]>http://www.bloggingstocks.com/2008/01/17/why-mortgage-insurer-mgic-fell-76/http://www.bloggingstocks.com/2008/01/17/why-mortgage-insurer-mgic-fell-76/http://www.bloggingstocks.com/2008/01/17/why-mortgage-insurer-mgic-fell-76/#commentsFiled under: , , ,

Last March I suggested that mortgage insurance companies such as MGIC Investment Corp. (NYSE: MTG) might be in some peril. Since then, MTG stock has lost 76% of its value.

Back then, MGIC had negotiated a merger with Radian Group Inc. (NYSE: RDN) but that deal fell apart in September. Both mortgage insurers were on the hook if mortgagees ended up not making their payments. But mortgage insurers hoped they would be able to argue that they didn't have to pay if they could prove there was mortgage fraud.

Last March I hesitated to recommend shorting MGIC since it was generating cash and had ample capital. But since then its credit rating has been downgraded, which makes it hard for it to position itself as an insurer. This after it restructured a subprime-mortgage joint venture without a bankruptcy filing, amid news that it received a request from the SEC to provide information related to the joint venture.

With its stock down 11% today and a 24.2% short interest, it's clear that investors see blood in MGIC's water.

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Why mortgage insurer MGIC fell 76% originally appeared on BloggingStocks on Thu, 17 Jan 2008 13:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>inthenewsmgicmtgradianrdnThu, 17 Jan 2008 13:58:00 EST<![CDATA[Cramer on BloggingStocks: CIT's shameful offering]]>http://www.bloggingstocks.com/2008/01/16/cramer-on-bloggingstocks-cits-shameful-offering/http://www.bloggingstocks.com/2008/01/16/cramer-on-bloggingstocks-cits-shameful-offering/http://www.bloggingstocks.com/2008/01/16/cramer-on-bloggingstocks-cits-shameful-offering/#commentsFiled under: , , ,

Jim Cramer on BloggingStocks TheStreet.com's Jim Cramer says enough is enough when it comes to a company issuing stock just to cover its preferred dividends.

Someone of some responsibility has to say, "Enough."

I mean, how is it possible that CIT (NYSE: CIT) (Cramer's Take) is going to be able to issue common stock shares to pay preferred stock dividends and interest? But they will get away with it. After all, companies come public because they have too much debt and then use the common stock proceeds to pay down the debt.

So CIT will be "able" to do it. But here's a question: would you ever want to own the stock of a company that does that? How bad can it be there that they can't pay the dividends on recently issued paper?

Of course, though, the goal is to stay alive, to play for another day, because no one ever merges -- other than that pathetic deal that Bank of America (NYSE: BAC) (Cramer's Take) made because it had to and was on the hook. I call it pathetic because, ask yourself, if you didn't have any money "in" Countrywide (NYSE: CFC) (Cramer's Take) or had lent to them wouldn't you just want them to go under?

That's what this CIT move looks like. Desperation.

Continue reading Cramer on BloggingStocks: CIT's shameful offering

Cramer on BloggingStocks: CIT's shameful offering originally appeared on BloggingStocks on Wed, 16 Jan 2008 09:05:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ABKBACBank of AmericaBankOfAmericaCCFCCITCIT GroupCitGroupCOFCountrywide FinancialCountrywideFinancialfeaturedIMBJim CramerJimCramerJPMMBIMTGNCCPMIWBWFCWed, 16 Jan 2008 09:05:00 EST<![CDATA[Cramer on BloggingStocks: The gloomy consensus bet's still right]]>http://www.bloggingstocks.com/2008/01/09/cramer-on-bloggingstocks-the-gloomy-consensus-bets-still-right/http://www.bloggingstocks.com/2008/01/09/cramer-on-bloggingstocks-the-gloomy-consensus-bets-still-right/http://www.bloggingstocks.com/2008/01/09/cramer-on-bloggingstocks-the-gloomy-consensus-bets-still-right/#commentsFiled under: , , , , , , , , , ,

TheStreet.com's Jim Cramer says it's still too early to get contrarian about the universal negativity on retail.

Squeeze?

DuPont (NYSE: DD) (Cramer's Take) better than expected. Countrywide (NYSE: CFC) (Cramer's Take) puts up numbers that don't seem bankruptish. We could have a day's respite from the gloom. We certainly are owed one, at least in Nasdaq land.

Plus, when you go out with people from the trading desks, you are overwhelmed by the negativity.

Last night at a buy-side/sell-side dinner, a smart guy I know who loves the short side tried to make a case for some down-and-out airlines and retailers. He's a price guy, meaning that he believes everything has a price and that you have to start looking at a Lowe's (LOW) here or a Macy's (M) because if you start buying now, put some on, you will be getting a pretty decent risk-reward ratio.

I thought people were going to throw things at him. He was immediately ridiculed as someone who didn't understand what's out there, the collapse of consumer spending as evidenced by Brinker's (NYSE: EAT) (Cramer's Take) Chili's, AT&T (NYSE: T) (Cramer's Take), Family Dollar (NYSE: FDO) (Cramer's Take) and all of the other usual suspects Tuesday.

Continue reading Cramer on BloggingStocks: The gloomy consensus bet's still right

Cramer on BloggingStocks: The gloomy consensus bet's still right originally appeared on BloggingStocks on Wed, 09 Jan 2008 10:05:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>abkadmagubgbzhcfcchsdddedhieatetfcfdofeaturedhovmbimosmtgphmpmispfttlbWed, 09 Jan 2008 10:05:00 EST