Why the Heck Does Anyone Take Deutsche Bank's Silly Housing Report Seriously?
Started by The_President
over 17 years ago
Posts: 2412
Member since: Jun 2009
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Considering that Deutsche Bank lost over $4 billion last year, since when are they the housing market "experts." If they are so smart, then why did they lose so much money??? Frankfurt am Main, February 5, 2009 Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) today reported unaudited figures for the fourth quarter and full year 2008 in line with its pre-announcement on 14 January 2009. For the full year... [more]
Considering that Deutsche Bank lost over $4 billion last year, since when are they the housing market "experts." If they are so smart, then why did they lose so much money???
Frankfurt am Main, February 5, 2009
Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) today reported unaudited figures for the fourth quarter and full year 2008 in line with its pre-announcement on 14 January 2009.
For the full year 2008, the bank reported a net loss of EUR 3.9 billion and a loss before income taxes of EUR 5.7 billion. Diluted earnings per share were a negative EUR 7.61, compared to positive EUR 13.05 in 2007. Pre-tax return on average active equity, per the bank's target definition, was negative 20%, versus positive 26% in the prior year. The Management Board and the Supervisory Board have recommended a dividend of 50 cents per share, compared to EUR 4.50 per share for 2007. The Tier 1 capital ratio, reported under Basel II, was 10.1% at the end of the year, compared to 8.6% at the end of the prior year (reported under Basel I). Tier 1 capital at the end of 2008, reported under Basel II, was EUR 31.1 billion, compared to EUR 28.3 billion at the end of 2007 (reported under Basel I).
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Response by The_President
over 17 years ago
Posts: 2412
Member since: Jun 2009
and considering that BANKS are the ones who got us into this recession, shouldn't they be the last ones people take advice from?
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Response by Riversider
over 17 years ago
Posts: 13573
Member since: Apr 2009
Niels Bohr : "Prediction is very difficult, especially if it's about the future
There's also another quote comparing opinions to a body part and everyone has one....
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Response by The_President
over 17 years ago
Posts: 2412
Member since: Jun 2009
yeah, too bad Nostradamas is not alive. If he made the same prediction as DB did about hosuing prices, I would sell my house YESTERDAY.
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Response by The_President
over 17 years ago
Posts: 2412
Member since: Jun 2009
Interstingly, last year I actually glanced through my Nostradamas book to see if he made any predictions relating at all to the economy and housing markets, but I could not find anything.
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Response by yoss
over 17 years ago
Posts: 2
Member since: Jun 2009
DB lost far less than other IBanks last year. In addition the vast majority of those losses were not on real estate but equity / high yield trading and other credit products (CDS). I personally would trust the DB report, written by investment professionals who study mortgages for a living, more than the opinion of an anonymous poster who admits to owning a Nostradamas book. The entire point of looking only at the numbers is they are divorced from personal opinions and prejudices. It is obvious you have some "skin in the game" and I challenge you to provide an empirical analysis to refute the DB report.
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Response by falcogold1
over 17 years ago
Posts: 4159
Member since: Sep 2008
Belly Buttons?
Do people who live in NJ have Belly Buttons? bet they are outies!
May be this president should be called Uncle Alpie Outie!
Just kidding .................Mr. President
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Response by cfranch
over 17 years ago
Posts: 270
Member since: Feb 2009
I would think the people most responsible for the housing bust would be the most knowledgeable about its effects.
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Response by The_President
over 17 years ago
Posts: 2412
Member since: Jun 2009
not true yoss. Deutsche Bank took a beating in reale state:
As Kansas City’s largest owner of foreclosed properties, Deutsche Bank lets the city rot
No matter which city you look at, Deutsche Bank is likely going to be the #1 owner of foreclosed houses in it. I recently read that Deutsche is the #1 owner of foreclousures in LI, but I'm digging for the link. So quite honestly, I don't see how DB is so smart.
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Response by The_President
over 17 years ago
Posts: 2412
Member since: Jun 2009
and in NYC, DB is the #1 eviction server (not sure what that means, but I'm pretty sure it is not good news for DB's bototm line):
If you read the article you linked you would see (or maybe you are so biased you wouldn't?) that DB is acting as trustee (ie. they get paid money by the pass thru certificate holders to process the payments and take possession of collateral in a default) and has no economic interest in the home itself. From the article:
"If the trustee doesn't own a foreclosed home, Duffy posits, then, "It's who? A bondholder in Norway?""
So, if this article that you didn't even read is your version of empirical analysis (its actually anecdotal by the way), I don't see how anyone could take your opinions (and they are just that) seriously.
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Response by alanhart
over 17 years ago
Posts: 12397
Member since: Feb 2007
yoss, go easy on him. He's sort of, um, the honorary president of New Jersey, like.
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Response by columbiacounty
over 17 years ago
Posts: 12708
Member since: Jan 2009
more of a cub scout leader i think.
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Response by 30yrs_RE_20_in_REO
over 17 years ago
Posts: 9913
Member since: Mar 2009
"and in NYC, DB is the #1 eviction server (not sure what that means, but I'm pretty sure it is not good news for DB's bototm line):"
It basically means they service loans and foreclose on properties, and they took back the most number of Coops & Condos from December 2008 through April 2009 than any other servicer (or landlord doing non-payment evictions))
and considering that BANKS are the ones who got us into this recession, shouldn't they be the last ones people take advice from?
Niels Bohr : "Prediction is very difficult, especially if it's about the future
There's also another quote comparing opinions to a body part and everyone has one....
yeah, too bad Nostradamas is not alive. If he made the same prediction as DB did about hosuing prices, I would sell my house YESTERDAY.
Interstingly, last year I actually glanced through my Nostradamas book to see if he made any predictions relating at all to the economy and housing markets, but I could not find anything.
DB lost far less than other IBanks last year. In addition the vast majority of those losses were not on real estate but equity / high yield trading and other credit products (CDS). I personally would trust the DB report, written by investment professionals who study mortgages for a living, more than the opinion of an anonymous poster who admits to owning a Nostradamas book. The entire point of looking only at the numbers is they are divorced from personal opinions and prejudices. It is obvious you have some "skin in the game" and I challenge you to provide an empirical analysis to refute the DB report.
Belly Buttons?
Do people who live in NJ have Belly Buttons? bet they are outies!
May be this president should be called Uncle Alpie Outie!
Just kidding .................Mr. President
I would think the people most responsible for the housing bust would be the most knowledgeable about its effects.
not true yoss. Deutsche Bank took a beating in reale state:
As Kansas City’s largest owner of foreclosed properties, Deutsche Bank lets the city rot
http://www.pitch.com/2008-08-21/news/as-kansas-city-s-largest-owner-of-foreclosed-properties-deutsche-bank-lets-the-city-rot/
this is an article about New Haven:
The two largest owners of bank-owned properties in town are Deutsche Bank and Wells Fargo.
http://newhavenindependent.org/archives/2009/04/when_livable_ci.php
No matter which city you look at, Deutsche Bank is likely going to be the #1 owner of foreclosed houses in it. I recently read that Deutsche is the #1 owner of foreclousures in LI, but I'm digging for the link. So quite honestly, I don't see how DB is so smart.
and in NYC, DB is the #1 eviction server (not sure what that means, but I'm pretty sure it is not good news for DB's bototm line):
http://www.nypost.com/seven/05082009/news/regionalnews/renters_pay__cant_stay_168185.htm
If you read the article you linked you would see (or maybe you are so biased you wouldn't?) that DB is acting as trustee (ie. they get paid money by the pass thru certificate holders to process the payments and take possession of collateral in a default) and has no economic interest in the home itself. From the article:
"If the trustee doesn't own a foreclosed home, Duffy posits, then, "It's who? A bondholder in Norway?""
So, if this article that you didn't even read is your version of empirical analysis (its actually anecdotal by the way), I don't see how anyone could take your opinions (and they are just that) seriously.
yoss, go easy on him. He's sort of, um, the honorary president of New Jersey, like.
more of a cub scout leader i think.
"and in NYC, DB is the #1 eviction server (not sure what that means, but I'm pretty sure it is not good news for DB's bototm line):"
It basically means they service loans and foreclose on properties, and they took back the most number of Coops & Condos from December 2008 through April 2009 than any other servicer (or landlord doing non-payment evictions))