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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: DebtBomb who wrote (132841)7/11/2008 9:37:19 AM
From: butschi2Read Replies (1) of 306849
 
FRE/FNM down another 40% both.

Now it gets really unreal and ugly. Hopefull markets stabilize soon or it could spiral out of control.

Billions of wealth in Fre/FNM stock evaporate and options writers in put options will get crushed. Should be around another $30-40 Mio in losses in put options on both for market makers !

LEH is not much better around 100.000 Contracts open with x 100 shares x $10 = $100 in losses if not hedged in time.

OE at the end of next week should get interesting combined with OIL moving around erratically there should be get some MM get caught on the wrong side.
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