The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: neolib who wrote (110947)	3/17/2008 1:35:35 PM
From: Hawkmoon	Read Replies (1) of 306849

Your view seems to be that a bidding frenzy is an efficient market, which should not tolerate intervention, but a lack of bidders is a seized up market which demands intervention. No.. absolutely not.. I was very critical of these "interest only", and "no-doc" loans that were being spewed around.. I saw that it was increasing demand and a speculative bubble. I will admit that I didn't then recognize how severe it would become, but I certainly knew that prices were too high for my risk/reward analysis.. Even with interests at a low, the Fed has the ability to up the reserve requirements and lending standards for mortgage loans. I heavily fault Greenspan for not implementing these regulations. It's no different than if my broker lets me borrow 100% on the value of stock I hold, or even more foolish, loans me 100% up front to buy a stock I don't have the cash to purchase outright. And, of course, I blame the rating agencies, which I perceive had a direct conflict of interest in creating and then rating these CMO Traunch products. I'm surprised no one has filed a class-action lawsuit against them.. Hawk

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