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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Travis_Bickle who wrote (111219)3/18/2008 9:58:34 AM
From: RiskmgmtRead Replies (1) of 306849
 
Hi Seminole83,
Interesting also, that there are 2 BSC threads plus some brokerage threads here on SI with only 1 short post in years.
Nothing covering Bears actually Derivative exposures.

Conclusion, most of the owners of these stocks know precious little about the real financial liabilities these companies have.

Butschi2 is the first poster I've seen to actually read a 10Q and comprehend the enormity of the risk.

Message 24415967

Most financial reporters are not getting the facts or don't understand them.
"As of November 30, 2007 and 2006, the Company had notional/contract amounts of approximately $13.40 trillion and $8.74 trillion, respectively,"

That's 22 trillion!! , even if thats "Notional" it's a mind boggling number. Considering much of it has MBS as it's collateral and considering the "collateral" i.e. Real Estate values are falling, what 15%,20%

Is it any wonder the majority of people can't grasp it, most calculators don't go that high and it is a very esoteric group that ever use those kind of numbers.
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