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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 (47159)	12/13/2005 12:01:49 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 110194

Russ, I think that is pretty important news, no snooze at all. I do believe predatory lending practices is prevalent in the subprime industry because that model itself provides marginal benefits to the borrower. I do believe that sooner or later, irresponsible Wall Street investment bankers would be call on the carpet to explain the due diligence they performed when marketing all the exotic MBS and related products. No problem when everything is going up but when the music stops, there are not going to have enough chairs for many. btw - NFI and NCC both reported performance for those interested. phx.corporate-ir.net novastarmortgage.com NCC mentioned something interesting. With the wave of BK filings in Oct, the effect on unsecured credit was immediate. NCC believes the effect on secured credit will come in the next few months and they are anticipating a loss of $20-$30 million. I am guessing that many are in the same boat, along with Katrina losses also. Ramsey

To: russwinter who wrote (47159)	12/13/2005 8:32:57 PM
From: kris b	Read Replies (2) \| Respond to of 110194

Man, what is wrong with American people. They have to be protected from cigarettes, hot coffee, fat unhealthy food and now predatory lending. When will they get their heads out of the collective asses and start thinking for themselves. Don't they know ( of course they do know, but they are buying a call option on house appreciation ) that paying idiotic prices for RE is detrimental to their financial health. Are they all brainless morons? Or maybe they are very smart? When house prices go up, their call option is in the money, and everything is fine. But if RE collapses and option expires worthless, they are under water, it is RE Industry's and their predatory practices fault. What do you think is it a former or a later? I think former. Morons. Kris