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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 (22166)11/20/2004 11:39:30 PM
From: mishedlo  Respond to of 110194
 
Another reason is that the banks don't think there is a RE bubble as they are increasingly willing to keep RE on books.

Think about that sentence for a bit and explain the reason please.

I think you mean something like this: BECAUSE banks don't think there is a RE bubble they are increasingly willing to keep RE on books.

I have no idea why they feel this way but keeping RE on the books is certainly not the reason, it is the result.

Mish



To: ild who wrote (22166)11/21/2004 1:18:16 AM
From: mishedlo  Read Replies (1) | Respond to of 110194
 
G20 MEETING Japan has confidence in US adherence to strong dollar policy
[Oh man - I have to post this one just for humor. mish]

Message 20787703



To: ild who wrote (22166)11/21/2004 6:01:56 AM
From: Bill/WA  Respond to of 110194
 
<<I guess banks like retaining ARM mortgage loans for two reasons:
1. with ARMs they don't need to gamble with future interest rates movement, as they just milk the margin.>>

Wonder what happens when the banks find out that a lot of those ARMs were given to less-than credit worthy customers?