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

To: orkrious who wrote (26755)	2/19/2005 8:27:01 AM
From: russwinter	Respond to of 110194

No doubt the helicopters on still on the pads, with blades whirling and ready for lift off when something blow up. Right now I think they are holding their fire, as there are still plenty of speculative and animal spirits out there in silly season land. I'm sure when they bailed out FNM late last fall, they must have seen some disturbing things, and that's why you hear EZ Al addressing the GSE balance sheet expansion issues, and even admitting that there are "localized" housing Bubbles. Maybe the goal right now is to raise rates and toughen up lending standards enough so that housing prices in place like Calf flatten out for a period. Will be a tough exercise IMO, as I feel much of the Bubble there is momo and flip driven. Take that away and you have a big black hole underneath. The first time homebuyer has already been out (second lowest % in 25 years, see a prior post of mine recently on this)of the market in Calf, and the last month and two of higher ARMs rates has really taken away his ability to purchase.