Investing Strategies. What is your move?

This smells like the start of the next 'credit crisis'...
Some mortgage lenders – the worst of them – are beginning to go broke. According to a report from financial news service Bloomberg on Friday...

The U.S. mortgage industry is seeing its first lenders go out of business after a sudden spike in lending rates, and the wave of failures that's coming could be the worst since the housing bubble burst about 15 years ago.

Uh-oh.

It's true. In June, one of the first dominoes fell...

Mortgage lender First Guaranty – which originated $10.6 billion in mortgage loans in 2021 – filed for bankruptcy, after saying it laid off 80% of its employees and stopped making new loans.
 
jetman said:
This smells like the start of the next 'credit crisis'...
Some mortgage lenders – the worst of them – are beginning to go broke. According to a report from financial news service Bloomberg on Friday...

The U.S. mortgage industry is seeing its first lenders go out of business after a sudden spike in lending rates, and the wave of failures that's coming could be the worst since the housing bubble burst about 15 years ago.

Uh-oh.

It's true. In June, one of the first dominoes fell...

Mortgage lender First Guaranty – which originated $10.6 billion in mortgage loans in 2021 – filed for bankruptcy, after saying it laid off 80% of its employees and stopped making new loans.
Click to expand...
What I find is the Leadership of financial firms like First Guaranty likely made excessive profits while they were operating and pocketed that money (excess profits) instead of banking it for slow times. It would not be a stretch to speculate their business plan was to milk the company until the mortgage market slowed down, and then go bankrupt.

I suspect the First Guaranty Leaders will all be vacationing in top ski-in, ski -out accommodations in places like Aspen, Deer Valley, Breckenridge this Christmas.
 
GON,

I would like to see bonuses paid out to First Guaranty executives leading up to this bankruptcy…… similar to ToysRUs executives before company demise. 🦒

:unsure:

I do agree housing market will be very interesting the next year with recession and interest rates.
 
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GON said:
What I find is the Leadership of financial firms like First Guaranty likely made excessive profits while they were operating and pocketed that money (excess profits) instead of banking it for slow times. It would not be a stretch to speculate their business plan was to milk the company until the mortgage market slowed down, and then go bankrupt.

I suspect the First Guaranty Leaders will all be vacationing in top ski-in, ski -out accommodations in places like Aspen, Deer Valley, Breckenridge this Christmas.
Click to expand...
My business partner and I tend to keep more cash on hand than most of our accountant's clients - typically $500k as our "rainy day fund". Going into 2020 we were discussing drawing down this money to $100k as we had never needed it. Then CV-19 happened and we were shut down for 2.5 months. Payroll is over $100k per month so that doesn't actually last all that long but it allowed us to weather the storm. It's not sexy and I can think of a lot of things to do $200k with but it was a lesson in how you never know what's going to happen. That said, I'm in it for the long term and not trying to pilfer from my business.
 
Unfortunately small businesses were forced to close and big box retailers like Home Depot, Walmart, Costco, etc…. had 350 cars in their parking lot and booming with customers.
 
Bought Shell the other day and sold covered calls.

Ditto NEM this AM and immediately sold covered calls against all the shares.

Nice sums from the gate. Will hold and collect divi (IRA account) and if the shares go up enough to the call line. Just pocket the gain and move on.
 
Pablo said:
Bought Shell the other day and sold covered calls.

Ditto NEM this AM and immediately sold covered calls against all the shares.

Nice sums from the gate. Will hold and collect divi (IRA account) and if the shares go up enough to the call line. Just pocket the gain and move on.
Click to expand...
I got put ERX shares at expiration in July. Last Tues ERX was up 8% so I sold Sept covered calls at what I originally paid for them ($66/sh) if they get called away Sept 19th I will have made 50% annualized :). I trade our IRA $ just like I do our brokerage acct $. Good Trading!
 
Good day for our accts. We've been long oil & gas with ERX, and short tech and financials by being long TECS and FAZ.

This week I sold Sept 16th calls on all our shares and collected cash. "If" any or all shares get called away Sept 16th?, our annualized returns will be 50% to 60%.

Trading for income.
 
The only time ever hear of snap was when they missed earnings, and again today.

Wonder how important this organization is that I never heard of them and may have never seen it used their products.

There are thousands of publically traded forms I never heard of, but this appears to be a high profile company with a product and or service I have zero awareness of.
 
Oracle had thousands of layoffs a few weeks ago and were very well paying jobs.
Walmart had 300 layoffs at their corporate office.

Big companies are trimming the fat and getting ready for a slowdown. Payroll is the biggest expense and the easiest to cut from budget.
 
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Dave Hess said:
I think many people are in for a rude awakening when layoffs begin, economy in shambles and denial of a recession.
Click to expand...
^^^^ from July 25, 2022


www.cnbc.com

Amazon reportedly plans to lay off about 10,000 employees starting this week

Amazon plans to lay off approximately 10,000 employees in corporate and technology roles beginning this week, according to a report from The New York Times.
www.cnbc.com www.cnbc.com

” Amazon is planning to lay off approximately 10,000 employees in corporate and technology roles beginning this week, according to a report from The New York Times. “

These are very good paying Corp / IT jobs and not warehouse workers picking and boxing up Amazon orders.
 
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Dave Hess said:
^^^^ from July 25, 2022


www.cnbc.com

Amazon reportedly plans to lay off about 10,000 employees starting this week

Amazon plans to lay off approximately 10,000 employees in corporate and technology roles beginning this week, according to a report from The New York Times.
www.cnbc.com www.cnbc.com

” Amazon is planning to lay off approximately 10,000 employees in corporate and technology roles beginning this week, according to a report from The New York Times. “

These are very good paying Corp / IT jobs and not warehouse workers picking and boxing up Amazon orders.
Click to expand...
The warehouse workers picking and boxing up Amazon orders are VERY hard jobs.. well, at least in a Sort center they are. Fulfillment centers maybe different, I dont know. I've worked sort centers and that is one of the things they say is "young man's work." They also have hub delivery substations that if you get in with them "less than part time" (fairly easy to, something about you can apply every 6 months because if they dont like your "rate" they can dismiss you fairly easily) as well.

I am sure I'm not the only one that is Amazon and Walmart for "almost everything."

I've heard the stock market is like gambling.. I have always had an interest in "how to invest" but me, personally, I still have some stuff to pay so, not quite there yet. I may successfully use Self again, app, you open a CD and they approve you about $1500 then you pay monthly on it and it builds history then you get it back when you complete.. but that's not investing.
 
jetman said:
This smells like the start of the next 'credit crisis'...
Some mortgage lenders – the worst of them – are beginning to go broke. According to a report from financial news service Bloomberg on Friday...

The U.S. mortgage industry is seeing its first lenders go out of business after a sudden spike in lending rates, and the wave of failures that's coming could be the worst since the housing bubble burst about 15 years ago.

Uh-oh.

It's true. In June, one of the first dominoes fell...

Mortgage lender First Guaranty – which originated $10.6 billion in mortgage loans in 2021 – filed for bankruptcy, after saying it laid off 80% of its employees and stopped making new loans.
Click to expand...
This is the fallout from poor business practices and the Fed drive to lower inflation. The loss to the "system" is a debt of only 470 million dollars which is pennies and only 150 jobs
I agree though, it all depends on the FED to stop the rate increases and have a soft landing, something they never seem to get right, they did warn the public, their job one is to increase unemployment and cool the economy.

www.reuters.com

First Guaranty Mortgage files for Chapter 11 after layoffs

Mortgage lender First Guaranty Mortgage Corp filed for bankruptcy in Delaware on Thursday, saying it had laid off 80% of its employees and stopped making new loans.
www.reuters.com www.reuters.com
 
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