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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: ild who wrote (14963)11/10/2003 3:54:41 PM
From: valuemindedRead Replies (1) of 306849
 
Actually, they still service the loan so I do not think they sold it - and pocketed any money. That is what I originally thought, however. I guess since they do borrow short and lend long, they make the money up in a hurry anyway.

I think that eventually (when the rest of the world gets tired of propping up the dollar) FNM and FRE will be in for some severe migraines and that will take a portion of the real estate market with it. The good news (for homeowners) is that inflation will skyrocket as all the excess dollars come home to roost. The bad news is that credit will dry up so monetizing those assets will be difficult.

Not sure how to hedge this type of thinking. Maybe a good closed end commodity fund (which isnt at a premium) . . Any ideas out there ?

thanks
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