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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 (54301)	2/20/2006 12:18:07 PM
From: UncleBigs	Read Replies (1) \| Respond to of 110194

Imagine the public backlash as families are forced out of their homes for failing to keep up on their mortgage held by Asians. I can see legislation that repudiates all debt held by the Chinese on the grounds of unfair trade practices.

To: russwinter who wrote (54301)	2/20/2006 12:52:38 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

Unfortunately, for the FCBs, they will soon realize this error, when Joe Sixpack increasingly fails to pay his mortgage, and then turns over the keys. are you suggesting that the GSEs will default? or more precisely, that the US govt will fail to back up its "implicit" guarantee of the GSEs if the GSEs falter? in any case, with the yield curve inverted there seems to be less than zero penalty for playing it safe (very short and very high quality). i'm a three-month man, myself.

To: russwinter who wrote (54301)	2/20/2006 1:28:19 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 110194

"Unfortunately, for the FCBs, they will soon realize this error, when Joe Sixpack increasingly fails to pay his mortgage, and then turns over the keys." So if you had 100 billion dollars, where would you invest it? Mars is out. -g- Perhaps the Saudis and Chinese are figuring the US is still the best bet in a worldwide downturn. Clipping SFH rent coupons for the next 20 years... In the final analysis, the $$$ coming in is really OPM. The House of Saud did not earn this money. Easy to play fast and loose with OPM/sweat equity.