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

To: Ramsey Su who wrote (49562)	1/12/2006 12:16:36 PM
From: Paul Kern	Read Replies (2) \| Respond to of 110194

I am going to stick my neck out and opine that the regulated institutions are already pulling in the exotic mortgages in anticipation of the guidelines. This theory may be confirmed, or refuted, when WM, WFC, BAC etc report their loan production for Dec, especially in the non traditional categories. Ramsey, I was wondering the same thing. Ofcourse the subprimes could be writing to the unemployed and deeply in debt to keep their numbers up or they could be just lying.

To: Ramsey Su who wrote (49562)	1/12/2006 1:45:14 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 110194

The Economist Cover Story: Danger time for America economist.com "How should Mr Bernanke respond to falling house prices and a sharp economic slowdown when they come? While he is even more opposed than Mr Greenspan to the idea of restraining asset-price bubbles, he seems just as keen to slash interest rates when bubbles burst to prevent a downturn. He is likely to continue the current asymmetric policy of never raising interest rates to curb rising asset prices, but always cutting rates after prices fall. This is dangerous as it encourages excessive risk taking and allows the imbalances to grow ever larger, making the eventual correction even worse." GREBB DaY<G>?