All Clowns Must Be Destroyed Message Board

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Pastimes : All Clowns Must Be Destroyed

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To: patron_anejo_por_favor who wrote (30229)	4/29/2000 3:51:00 AM
From: patron_anejo_por_favor	Read Replies (1) of 42523

Doug Noland in The Prudent Bear on the real estate/mortgage lending bubble. prudentbear.com This article dovetails with today's news on Conseco(CNC), an insurer with an enormous portfolio of leveraged mortagage debt and derivatives. dailynews.yahoo.com The companies CEO and CFO resigned today after profits were down, reportedly due to write downs at the companies loan unit. Note that the company bought out Green Tree Finance a while back, a very large home loan originator: "The drop was partly due to an accounting change at Conseco's personal loan unit, previously called Green Tree Financial, which the company said it planned to sell last month, taking a $350 million charge for writing down the value of securities owned by the unit." I think we are seeing the unwinding of the mortgage bubble. This baby could go in a very, very short period of time, it's a house of cards with tons of loans and nonexistant (or extremely inadequate) assets behind them. This story deserves MUCH closer scrutiny than it has been given, and we will see lots more of it. Could the CNC story have contributed to the recent pull back in GE and JPM (who have huge derivative exposure)? I think so.

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