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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (15836)	6/25/2004 10:33:28 AM
From: ild	Respond to of 110194

Global: Europe Needs a Stronger Euro Stephen Roach (New York) morganstanley.com

To: ild who wrote (15836)	6/25/2004 4:09:56 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 110194

Fannie doesn't do jumbos....but they've raised the ceiling for conventionals, and you need buyers for the low end stuff to allow the bubble to propagate. The bubble is more than just Cali, NYC, and Beantown, and believe me when it goes there will be more than enough taxpayer pain to go around. The jumbos get securitized, too, of course...no one would put their own money at risk on a lot of the garbage that's being floated out there in mortgage-land. Underwriting standards have disintegrated.