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Strategies & Market Trends : CFZ E-Wiggle Workspace

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To: Galirayo who wrote (8699)9/25/2008 2:36:57 AM
From: Perspective  Read Replies (3) of 41413
 
1. Ain't gonna be any housing inflation in these next seven years.

2. That average holding period is gonna move out a LOT longer.

The derivatives are black holes. They can't recover. The problem is that debt that should have been priced to yield 10% to compensate holders for high risk and default coverage was mispriced to yield 6%, with Wall Street capitalizing the 4% delta and running away with it. The yield cushion that should have been preserved to keep the lenders whole over the duration of the loans was stolen to fund mansions and bonuses for the a$$hole investment bankers and children running hedge funds.

`BC
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