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

To: Think4Yourself who wrote (61439)	5/19/2006 9:59:56 AM
From: John Vosilla	Respond to of 110194

"This is what makes me nervous about shorting the mortgage lenders" Most of those smaller mortgage companies talked about like DSL or FED are seem to be exposed to a ton of option ARM's in bubble markets that are portfolio loans. Fannie and Freddie don't hold this stuff. Neither do they have anything to do with CORS that gives construction loans for condo developments.. Lack of reserves in rear view mirror GAAP accounting allows insiders to play with the large short positions even at this late date in the cycle..