The other shoe starts to drop

and it is a big shoe. The real worry about the housing market slowdown and the resulting effect on the overall economy was that the explosion of low quality loans would come back to haunt the financial markets. In fact many had expressed surprise that this had not happened. Well, brace yourself.

from Bloomberg:

June 29 (Bloomberg) -- Standard & Poor's, Moody's Investors Service and Fitch Ratings are masking burgeoning losses in the market for subprime mortgage bonds by failing to cut the credit ratings on about $200 billion of securities backed by home loans.

The highest default rates on home loans in a decade have reduced prices of some bonds backed by mortgages to people with poor or limited credit by more than 50 cents on the dollar and forced New York-based Bear Stearns Cos. to offer $3.2 billion to bail out a money-losing hedge fund. Almost 65 percent of the bonds in indexes that track subprime mortgage debt don't meet the ratings criteria in place when they were sold, according to data compiled by Bloomberg.

That may just be the beginning. Downgrades by S&P, Moody's and Fitch would force hundreds of investors to sell holdings, roiling the $800 billion market for securities backed by subprime mortgages and $1 trillion of collateralized debt obligations, the fastest growing part of the financial markets.

``You'll see massive losses from banks, insurance companies and pension managers,'' said Joshua Rosner, a managing director at investment research firm Graham Fisher & Co. in New York and co-author of a study last month that said S&P, Moody's and Fitch understate the risks of subprime mortgage bonds. ``The longer they wait, the worse it's going to be.''

Read the whole article by following the link.

I could not agree more

I heartily endorse the remarks by the englishman in the linked video. Some of our presidential wannabes would do well to echo his ideas.

Buffett's tax rate/

Tax Prof comments on Warren Buffett's tax rate.

Warren Buffet complained that he paid a 17.7% tax rate on his $46 million of taxable income in 2006, while his employees paid an average 32.9% tax rate (his receptionist's tax rate was 30%).

I think it worth remembering Buffett's 17.7% is a tax bill of near $8,000,000. While the secretary is paying maybe $33,000 if her salary is a hundred thousand. Does Buffett really get 250 times more service from his tax dollars? (h/t to Instapundit)

My sister's remarks at dad's memorial service

Here is the text of my sister's remarks at Dad's memorial service. We wrote our thoughts about dad separately without conferring at all. I found them to be amazingly similar.

"Most of us learn the difference between right and wrong at an early age and then spend the rest of our lives striving, with various degrees of success, to do right rather than wrong, to choose to be good rather than bad, to behave morally rather than immorally. But there are a few among us who do the right and moral thing because they are intrinsically good people. For these few, living a good and moral life isn't a question of choice and involves no internal struggle. These rare people are just good. my dad was one of these people.

I believe he embodied that which Immanuel Kant characterized as "a good will" ...an unconscious and inherent intent to live according to a moral command. And i believe that my dad's character and behavior were informed by this intrinsic good will. He was unfailingly kind anad generous, he was completely honorable, and he exhibited and unlimited capacity for love.

My father led a life both enviable and admirable, and his legacy lives on in the two fine men who are my brothers. They are a testament to the example he set as a husband, a father, and a man. He loved them, and me, with all of his great big heart and was enormously proud of them.

Since my dad died, many of you have asked if there is anything you could do for me and my family and I couldn't think of anything. But now I have. Admittedly it is corny and sentimental, but I don't care and I'm going to ask you all to do it anyway. here it is; today, tomorrow, next week, or next year, be nice to someone or tell someone you love that you love him. Do this in memory of my father, a good, kind, and loving man ...simply the best man I've ever known."

My father's Obituary

On the afternoon of June 16, Bruce Blackmore Lawrence, Sr., cherished husband,
father, grandfather, and uncle died peacefully in his sleep. He was born in San Antonio on March 18,1918, to Richard Laird Lawrence, Sr. and Bess Gallagher Lawrence. His parents and his 2 brothers, Richard and Ned, predeceased him. After high school, Bruce joined the 124th Cavalry, Texas National Guard, and was subsequently deployed to the China-Burma-India theater during WWII, where he earned the combat infantryman’s badge and was awarded the bronze star. After the war, he returned to San Antonio where he met, courted, and married Ruth Elizabeth Williams of College Station, Texas. Eventually, Ruth and Bruce moved to Dallas, where they raised their family and lived until retirement. Bruce is survived by his beloved wife
of 58 years, Ruth; son Bruce Blackmore (Tico) Lawrence, Jr. and daughter-in-law, Gail; daughter Laird Elizabeth Lawrence; son Rees Williams Lawrence anddaughter-in-law, Jennifer Cavan; granddaughter Kathryn Lawrence Johnson and her husband, Brett; great-granddaughter Isabelle Elze Johnson; and many nieces and nephews. Bruce was much loved and will be greatly missed.
A memorial service will be held on Wednesday, June 20th, at 2:30 in the chapel at the First Presbyterian Church of Dallas, 408 Park Avenue, Dallas, Tx 75201, and a reception will follow.

Father's Day

My father passed away yesterday. His death was not tragic nor unexpected since his health had been failing for a long time and we had been told to plan for less than 6 months. He passed quietly in his sleep without the stress and trauma of heroic medical efforts. Yet I am crushed. Dad was not particularly successful in any of the ways that greatness is usually measured. He achieved neither fame nor wealth, but, he may have been the best person I know. Generous to a fault, scrupulously honest, he treated everyone of any station with respect and kindness. I am a father and grandfather now and could not have had a better role model. Dad was the best.

Bruce Blackmore Lawrence
March 18, 1918 San Antonio, Texas -- June 16, 2007 Dallas, Texas

Awarded the Bronze Star and several other combat medals during service in World War Two.
Survived by his wife Ruth, children Laird, Rees, and Bruce Jr., granddaughter Kate and great granddaughter Isabelle.

He was the world's best Dad and I will miss him.