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

To: russwinter who wrote (24559)	1/13/2005 10:58:16 AM
From: Ramsey Su	Respond to of 110194

russ, look at the date of his original "warning" federalreserve.gov If we apply the same reaction time to "irrational exuberance", does it mean subprime will keep rocking for a few more years before crashing? <ggggg> Listening to the MDC CC, interesting comments on cancellations. Not only do they have a historically high cancellation rate, they finally admit that cancellations today would cost them money. Last year, they actually like to see cancellations because they turn around and resell same thing for a higher price. Today, the reverse is true. The optimism can only be matched by Kudlow.

To: russwinter who wrote (24559)	1/13/2005 11:44:40 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

<Subprime lenders offer higher-interest loans to borrowers with poor credit ratings who may not qualify for prime financing. Most subprime loans are resold on the secondary market.> One new trend surely must be the lack of new subprime loans in the bubble markets these days. Who could qualify for payments on an 8 or 9% loan at those prices? <"We are always looking for signs that some relative prices are out of line," Gramlich said. "It's certainly possible it's a bubble, but it's also possible, for various reasons, the cost of housing has shifted."> 1% option ARM programs qualifying most people at the initial payment rate with little or no down and the newfound belief that homes will appreciate at double digits each year has been the shift thanks in part to socialized government programs in Bush's new ownership society program. What happened to our new economy of only a few years ago?