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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 (40726)	9/2/2005 10:08:12 AM
From: orkrious	Read Replies (7) \| Respond to of 110194

Great Roach morganstanley.com

To: russwinter who wrote (40726)	9/2/2005 12:31:32 PM
From: Ramsey Su	Respond to of 110194

It seems to me that cash flow could be hit if payments are not received. At the same time, categorizing the loans may be quite difficult. For the regulated lenders, the Fed can relax reserve rules to allow the member banks to operate as usual. For the subprimers, they are basically regulated by their lines of credit and the ability to churn those loans. If everything goes into a semi frozen mode, I don't see how that can be good, especially when they can see the collateral deteriorating while loans that are ahead of them rack up negative amortization every day.