GLG News by Mr. Mark Mariotti, Chief Executive Officer
GLG News is now G+ Insights
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G+ is a community for professionals, academics and entrepreneurs to connect through online discussions and in-person meetings. You will continue to see G+ Insights (formerly GLG News) here as well as on the G+ website, where you can share and discuss the G+ Insights you read.
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OnLine Search, Current Economy Hedge...
October 24, 2008
Google defies economy to beat forecasts, shares surge | www.livemint.com
The internet and specifically search engines are where people go today for deep discounts, low costs, answers, information, and new jobs... Each and every year, the rotation (when feasible) more consumers find comfort within Internet properties.
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Automotive industry competition, more not less
October 14, 2008
GM, Ford SharesHit New Lows As Sentiment Fades Further | online.wsj.com
More competition, not less is required within the automotive industry. Positive results will eventually be rewarded by a free market.
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Southern California Mortgage Lending Rates Drop
September 15, 2008
Mortgage market improves with new market-leading deals | www.timesonline.co.uk
Effective immediately after the Fannie/Freddie take over, the DITECH origination service of Cerberus' GMAC Financial Services launched a television campaign to offer 5.5% interest rate mortgage loans.
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The Bear Sterns Equity Strip Model
September 15, 2008
Lehman Brothers faces Korean takeover bid | www.timesonline.co.uk
Unlikely that a suitor firm will take over Lehman directly by itself without assistance, perks or partners. As you may recall Bear Stearns in a similar situation, and remember that the Feds had to lend and assist JP Morgan with the acquisition.
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Localized Real Estate Recovery
August 18, 2008
Mortgage lending falls 32% as prices slump | business.timesonline.co.uk
The prior several years have definitely been a severe downturn (stating the obvious) in the destruction of existing housing prices. Bloated inventories, overextended borrowers, lack of decent funding, macro economics, lack of faith in the valuations have all contributed to this mess. But it definately is a cycle, and cycles CHANGE.
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August 12, 2008
Will Tom McKillop resign from Royal Bank of Scotland? | business.timesonline.co.uk
Yes, it is a mess - I have seen about 3 or 4 cycles such as these over the last 30-years. We have all seen this mess coming years ago. In 2004, a vast amount of mortgage originators were doing some very creative things to sell mortgages. HEOPA and high cost was in effect while these negative equity mortgages were written. But, if a measure of a trillion dollars markdown against the GDP is compared - it is not the end of the world - bad yes, stupid yes, and yes we will see this kind of thing again.
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Writedown low is a floor, cycles continue...
August 8, 2008
Wall Street braced for further $11bn writedown at Citigroup | business.timesonline.co.uk
a) markets self correct b) yes all sorts of pain occurs c) the cycle continues... lows become floors and investors flood in
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The US refined petrolium gasoline consumer must now smell the coffee
August 8, 2008
Chrysler Offers Gas Deal To Jolt Sales | online.wsj.com
For many decades, the world's refined petrolium gasoline consumer have not had such a plentiful and affordable stream of energy. Finally, the US refined petrolium gasoline consumer has experienced a history of $.27 a gallon in the sixties to $4.50 a gallon today. Price, will eventually CHANGE the habits of the US refined petrolium gasoline consumer.
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June 19, 2008
HP to Acquire EDS for $13.9 Billion | www.hp.com
HP is a long time solid provider of computer hardware, and EDS (founded the information technology out-sourcing industry more than 45 years ago) is a longtime provider of system services. The Plan of Merger, dated as of May 13, 2008, by and among EDS, Hewlett-Packard Company and Hawk Merger Corporation, under which EDS would be acquired by Hewlett-Packard Company appears to merge two very strong technology companies into one diversified technology giant.
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June 17, 2008
HOME INVENTORY INCREASES IN MAY | www.lvrj.com
With 45 percent of contingent sales identified as "short sales," or sales in which the lender will be required to accept less than the principal balance owed, we can't expect investor demand to grow. Investors currently have other more liquid and stable securities to place their bets, and these instruments are yielding strong cash-flows.
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May 27, 2008
MGAs Need To Prepare For Hard Market Now | www.propertyandcasualtyinsurancenews.com
MGA's can seek out better lines and Company deals. MGA's can seek out training to meet the changing demands. One very specific area an MGA can capitalize on is TECHNOLOGY.
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If history teaches us anything... it teaches us NOT to predict the future.
April 29, 2008
Is now the time to aggressively buy semi stocks, i.e. is the bottom of the cycle near? | www.edn.com
But the future can be managed. We can look at the past cycles and then extrapolate forward potential probabilities. When markets contract, they can keep contracting to oblivion. But the probabilities of markets which are infrastructure tested, tried and true, tend to rebound. Demand growth and upgrades within this market alos indicate stgrong probabilities of recovery. Automobile, real estate, semiconductors, consumer electronics, transportation, financial markets all have probabilities of recovery from their respective lows. Bottom fishing is a tricking business, I suggest that small tax-lot scouts be positioned to exploit dollar-cost-averaging if the market does rebound, and mitigate allocation in case the market stalls.
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Rotation continues towards Internet commerce.
April 28, 2008
Internet Economy Looks Strong, Some Experts Say | www.cio.com
Many factors, such as; convenience, better fraud protection, acceptance, user interface improvements, peer reviews, dysfunctional brick and mortar stores, high transportation costs all contribute to the growth of Internet commerce. The list is very short which tracks products and services which do not have an Internet presence. More products and more services are added to the business-to-consumer Internet transaction. Small ticket items ranging $20 or less, to $100,000 exotic sports cars are becoming much more acceptable for Internet commerce.
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Trading is a transaction based model
April 28, 2008
TD Ameritrade 2Q profit rises 32 percent on trading activity | biz.yahoo.com
Whether markets are up or down - if a trading company such as TD Ameritrade (merged from many different trading companies and platforms), Scottrade, Schwab, Knight, etc runs their business efficiently, trade volume effect growth.Seems that towards the end (long trade exits - short trade entrance) of a bull market, and beginning (long trade entrance - short trade cover) of a bull market the equity trades intensify.
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April 21, 2008
Freddie to Finance Jumbo Loans | online.wsj.com
Freddie Mac (GSE - Government-Sponsored Enterprises) wastes no time and begins to finance $10 billion to $15 billion in jumbo mortgages from big lenders. This follows the actions of other GSE's to add liquidity into the real estate market. I sincerely believe that this effort will help to flatten out the sagging real estate market and brace the industry with a solid floor to grow from. Please, congress... keep up the good work and continue to CHANGE the mortgage lending industry. Times and technology have CHANGED in such ways to help prevent another mortgage lending liquidity crisis in the future. Surely, many current homeowners which owe mortgages on their homes, are currently feeling the bite of rate cap creep and overall monthly mortgage payment increases. And many unhappy borrowers which cannot continue making the payments, will look to congress to CHANGE the lending industry rules to help them 'work out' solutions with their lenders, WITHOUT BURNING THE INVESTOR.
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Steady Freddy... Fannie... Penny and the FHA
April 21, 2008
Mortgage applications up, FHA index climbs more | www.reuters.com
Current 'so called' mortgage metrics are not necessarially useful now or in the future. Ratios and numbers can always leave room for interpretaion and misdiagnosis. Definately positive refi action is taking place for the strapped borrowers and principal committed investors; the GSE's should keep this effort going. However... If foreclosure mitigation and borrower forbearance refinancing are counts which are included in overall refinancing - well that can blurr the condition of the lending industry and the real estate market's overall recovery.
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Firms like WaMu are pass-thru lenders. Ease investor anxiety NOW
April 21, 2008
WaMu Ditches the Wholesale Mortgage Biz | www.businessweek.com
a) Ease investor anxiety NOW b) Secondary Mortgage Market Investors have been worried that recent data indicate a slowing economy, which would continue to cut into potential profit growth and actual principal at some of the nation's biggest mortgage companies, and portfolios.
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Patterns and behaviors CHANGE - and then CHANGE again...
April 17, 2008
WaMu Ditches the Wholesale Mortgage Biz | www.businessweek.com
a) it does appear that the independent mortgage broker is going the way of the independent insurance agent and the independent fee based financial planner b) technlogy will be key in providing the independent mortgage broker, the acutal end-user (borrower) and actual owner-buyer-investor of the mortgage more fair (APR - common comparrison tool) choices
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Move compliance metrics to the front
April 17, 2008
Study: subprime crisis spurs lawsuits | money.cnn.com
a) existing federal, state amd municpal compliance check and balances exist b) move Rating Agency solutions to subprime mortgage losses in the large secondary market traunces into the origination systems & procedures
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Very profitable business - eats you alive if you don't watch it closely
March 18, 2008
Standard Insurers Nab More Nonstandard Auto Biz | www.propertyandcasualtyinsurancenews.com
1) Full Disclosure - Mark Mariotti ran a nonstandard auto operation (California admitted MGA with Ohio company underwriting) in Southern California during the 1970's & '80s with a direct-marketing model and a non-internet online (yes back then) reservation style quoting system. Our loss ratios were VERY LOW. 2) Basically it is risk versus reward. Many cannot obtain auto insurance whatsoever with a messy MVR - thereby opening the doors for a very aggressive and systemized firm to take on the risk. 3) Technology will make this very specific segment profitable as long as the operator watches the loss-ratio and g&a expenses like scrooge.
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