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

To: ild who wrote (37389)	7/31/2005 2:28:43 PM
From: russwinter	Respond to of 110194

The lenders can only do this by engaging in Enron-like accounting, and booking this as a non-cash transaction, in otherwords pretending that the whole amount is being paid. Message 21547947 On a cash basis they are getting killed, as the cost of funds just pops higher and higher. Since the MBS market isn't very receptive already to this toxic stuff, the lenders just swell more and more of it into their portfolios. Again I ask, where are the auditors? Guess they figure it all out year end? I have to beleive lenders will all cry Uncle at once, and about the same time speculators list vacant houses in droves (which is now) and as collateral goes down hill fast (now again). Wheels are falling off this facade before our very eyes.