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

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To: Ramsey Su who wrote (68915)8/27/2006 4:36:05 PM
From: ild   of 110194
 
<<< In the subprime world, that was exactly what happened.>>>

IMO what has happened in the subprime world was that bigger, better capitalized banks have squeezed out smaller players. Originally the margins were huge, but by now the margins fell to the point where smaller outfits are no longer profitable. Even CFC said it didn't want to compete for market share. But it's all just the beginning as the defaults have not yet started in earnest.
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