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Thursday, October 29, 2009

Moody's Projects Further House Price Declines, Market and More

by Calculated Risk on 10/29/2009 04:00:00 PM

I'm working on a GDP post for later ...

Stock Market Crashes Click on graph for larger image in new window.

From Doug Short of (financial planner).

Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.

The S&P was up 2.24% today ...

From Bloomberg: Moody’s May Downgrade Mortgage Bonds With New Outlook (ht Brian)

Moody’s Investors Service said it’s planning a review of U.S. home-loan securities that will likely lead to another round of rating changes based on a new view that property prices won’t bottom until next year’s third quarter.

The firm will boost its loss projections by “significant” amounts for prime-jumbo, Alt-A, option adjustable-rate and subprime mortgages backing bonds issued between 2005 and 2008, also after seeing higher losses per foreclosure than expected ... Recent data showing rising home prices doesn’t prove the slump is over, the company said.

“The overhang of impending foreclosures and the continued rise in unemployment rates will impact home prices negatively in the coming months,” New York-based Moody’s said.
emphasis added
And the Fed has finished its $300 billion Treasury purchase program - from Bloomberg: Fed Ends Treasury Buys That Capped Rates