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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: shades who wrote (80958)7/11/2007 7:40:04 AM
From: Think4YourselfRead Replies (3) of 306849
 
I actually agree with you for the most part. Shorting the banks IS very dangerous, even if only because the government tends to bail them out when they really mess up.

My goal is very specific. I only want to short institutions that hold lots of the garbage CDO's and RMBS's relative to the rest of their investments and are highly leveraged, like a LTCM. They will have to mark to market soon, and that will be a big hit to their balance sheets. The more the leverage the bigger the hit.

Have so far not found any institution that fits that bill.
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