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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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From: sciAticA errAticA4/14/2005 12:24:17 PM
   of 110194
 
Will General Motors Bring The House Down?

The Housing Bubble
Thursday, April 14, 2005
thehousingbubble.blogspot.com

GMs' stock is tanking again this morning, down to multi-year lows. This NM News site ( nationalmortgagenews.com ) has a table showing the firms' increasing involvement in the mortgage market.

Another mortgage stock is in the news with a downgrade from Merrill Lynch, and Doral Financial is falling hard. Once again, mortgage backed securities are at the heart of the problem. "Doral shares have declined amid heavy volatility in recent weeks, as analysts fret over whether Doral is being too aggressive in valuing its securities portfolios. The shares have lost roughly two-thirds of their value since mid-January."
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