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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 (24956)	1/19/2005 12:21:24 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

<Yes, but the difference was that interest rates went down, not up, allowing these to be refinanced and the mortgage owner to get off the hook. > So true and asset values were also dirt cheap relative to operating cash flows. Generational top is near only are we in the bottom of the ninth or still in the seventh inning? Is Greenspan even aware of the monster he has created all in the game of avoiding the normal deep valleys of a typical economic cycle?

To: russwinter who wrote (24956)	1/19/2005 12:59:46 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

That way the lenders just got to keep the fees and short term goodies that go along with these Old Maid Cards. The lenders kept the goods and sold the empty bags to FNM. I reported this earlier but will repeat it... FNM was essentially paying origination fees to banks to buy back loans (loans it already had) at less favorable rates. Then they had the "pleasure" of attempting to dynamically hedge all those treasuries and swaps thruout those huge swings in each direction. How is that for a business model? Mish