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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (10068)	7/31/2004 1:32:05 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

I believe no payment was required on that balance until 18 months. Now there were all kinds of traps about being late eyc etc etc during the term of the loan, but that will be the only thing on the card. I think he gets that 12K and does not have to pay a dime for 17 months. At least that is my understanding. As long as he does not use that card for anything else (and he will not) he is fine for a long time. He did this before for 1 year now he gets free money for 1.5 years. Savings at 2% is about $360 To me its not worth the worry that something goes wrong. To him it is Mish

To: Tommaso who wrote (10068)	8/1/2004 12:28:53 PM
From: mishedlo	Respond to of 116555

Safehaven I believe this is the key: Greenspan and the Fed can do all of the tough talking they'd like about standing ready to raise interest rates if inflationary pressures even sneeze. But the reality is that they will not be able to tolerate a pop in the mortgage finance bubble. That will not be acceptable as the fallout would seem much more severe systemically than was the case with the equity bubble burst. And, as you know, we have not even mentioned potential impacts on the large GSE's that are holding a good chunk of the remaining mortgage debt in this country. Or the fallout a significant GSE problem would transmit throughout the system. You remember the GSE's. Folks like Freddie Mac, who still can't seem to be able to produce accurate financial statements and supposedly won't be able to until next year. Just be patient, right? Or Fannie who clocked in at 2.2% equity to total capital as of 12/31/03. A potential GSE problem would not only be a huge negative for shareholders, but could put a severe dent in the US domestic fixed income market. safehaven.com