John Pitera's Market Laboratory Message Board

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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Augustus Gloop who wrote (8158)	8/25/2007 10:32:58 AM
From: Hawkmoon	Read Replies (1) of 33421

Extend money to the banks at 3% to refinance existing mortgages. In turn the banks would be forced to refi ALL existing mortgages at say 4 - 4.5% fixed.M I would concur.. The real-estate bubble has been pierced, prices are already declining and it's unlikely that people will be willing to continue paying up for new homes anytime soon. Cannot those sub-prime home loans can be reassessed, valuation of the collateral value reanalyzed, and lower rate loans offered to assist the borrower to keep the mortgage payments within their monthly budget? What it's also going to take is a lot of those banks who packaged and sold off those loans as CDOs, taking on the responsibility to buy them back and turn them into traditional loans. I may be wrong, but I think we're seeing the death of the CDO market (at least for real-estate), as we've known it. Hawk

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