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

To: mishedlo who wrote (46299)	11/30/2005 11:32:25 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

One thing to keep in mind is that the true replacement value of housing is far below where they are now selling, thus the profit margins are still large even with softer pricing. Therefore, as long as there is activity, the homebuilders score even if they slash prices 5-10%, or add equivalent "incentives". This is going to go on as long as these exotic loans are being made, just don't think some buyers will stop in a rationale manner until the punch bowl is removed. Is the punch bowl going away? One would have thought, and think there are signs, but here we are with a stable MBA purchase index. Are you hearing anything about MBS credit spreads, subprime mortgages are deteriorating?: Message 21929887 MBA purchase index: 11-4: 466 11-11: 478 11-18: 472 11-25: 476 idorfman.com