According to the Nattering Naybob (NN), Barclay''s CEO, Marcus Agius recently told reporters that the (banking) crisis is not near an end and that it will have a little further to go. Agius declined to comment when asked if he was comfortable with the bank''s capital position.
"As well he should keep his mouth shut'', says NN, ''because he knows all to well what exactly is coming. Just like WaMu, Wachovia, Wells, UBS and Deutsche Bank, et al. Barclay''s are in deep shit..."
Sources tell NN (and here he has received separate validation) the lenders are committing fraud enmasse by not putting loans into delinquency.
Some borrower''s with smaller lenders are getting "surprise" NOD''s without prior notice. This is due to poor service levels as the bureaus are overwhemled by sheer volume. Yet, there are many people who have now missed 6 months of payments without so much as a word from the bank.
The banks are doing this because:
1. the real delinquency and foreclosure rate would shock the public and could cause panic;
2. the true state of their books would shock the stockholders into further sell off;
3. so as to keep the loans eligible to dump on the new GSE''s bailout programs.
"Despite all of this and the FHA, FNMA, FHLMC net, the REO''s from the next wave of ARM resets (2nd thru 4th quarter) will be HUGE."
This and a major PMI insurer failure should result in another 20% price decline by years end...
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