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

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To: russwinter who wrote (77890)1/19/2007 10:11:20 AM
From: bart13  Read Replies (1) of 110194
 

Through the Looking Glass:

"Mid-2005 corresponds to the peaking of housing prices suggesting that the underlying collateral, and ultimately credit quality of the vintages that FCBs have purchased are suspect. Looks like the masterplan is to make them the ultimate bagholders?"


An interesting view on what the primary dealers of the Fed have been doing - the MBS green line:



I also note in passing that both the accept/submit ratio is dropping on the TIOs ops since December and also that the last two TIO ops have not managed to move the market much (S&P is only up about 20 points since mid December with an approx. $40 $ $20 billion injection, respectively).
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