Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (29411)	4/11/2005 2:59:25 AM
From: Elroy Jetson	Read Replies (2) \| Respond to of 306849

That sounds reasonable to me. New loans decline dramatically leading to wholesale layoffs at lenders and title insurance companies. Then when the wave of foreclosures hit, the mortgage insurance companies and lenders will get hit with big losses. Multi-industry firms like Cendant, which owns Coldwell-Banker Realty, will try to hide the damage - so shorting them would bring unreliable results. .

To: patron_anejo_por_favor who wrote (29411)	4/11/2005 9:39:22 AM
From: Robohogs	Read Replies (1) \| Respond to of 306849

Might also be able to short the business dev companies. If things get that bad, then bus dev guys will get killed. Even if RE does not get hit quite so bad, the bus dev guys may still get killed given the level of credit spreads now and in the near future. Speaking as a former HY bond and leveraged lending specialist, the current market is crazy (if already a bit toned down). I think the GM downgrade in near future could gut the market with illiquidity and fear issues. Jon