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

To: John Vosilla who wrote (30714)	4/15/2005 3:49:07 PM
From: ild	Read Replies (2) \| Respond to of 110194

VIX exploded finance.yahoo.com I have May VIX futures. They are trading below VIX value.

To: John Vosilla who wrote (30714)	4/15/2005 4:10:22 PM
From: NOW	Respond to of 110194

If things collapse and debts get marketed down to 20-30 cents on the dollar like after the S&L fiasco or telecom bust these guys might get stuck with the loss for once. yeah ,sure....

To: John Vosilla who wrote (30714)	4/17/2005 3:57:40 AM
From: Taikun	Respond to of 110194

John, <To all of these people the deal is nothing more than little risk > I agree. Trump uses OPM and so is not at personal risk, but there are a bunch of investors rolled up into each of his deals, and then they get financing, but in this economy money can be created virtually out of thin air, so the financial economy has become disconnected from the real economy, but this can't last forever, and only works when the bubble is expanding, just like a pyramid scheme. This economy is like a hedge fund at the top, but at the bottom it is like a Ponzi scheme with credit cards and home loans being the membership fee. Imagine for a second if home values were not value by the last trade (sale) but instead by the assumed value of all of the homes in a given area were liquidated at once and a clearing price was sought. Which is reality? Remember Houston in the 80's...not buyers. Do you think they'll ever use the 'clearing price' method for home values? D