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

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To: russwinter who wrote (38065)8/7/2005 9:01:48 PM
From: Ramsey Su  Read Replies (3) of 110194
 
Downtown San Diego is a different animal. When it blows up, it would be something that we have never experienced before. In fact, I just came back from bike ride and my route took me through parts of Downtown. There are still many holes getting ready to put future REOs in.

ccdc.com

As for loans, I am wondering when are underwriting guidelines going to return to some prudent level. If defaults and loss severity start going up, the whole MBS market can blow up. Rating agencies would be forced to change all their ratings.

We are starting to enter the most vulnerable period after the mother of refi mania back in 2003. Could the perfect storm be just around the corner?
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