Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : SiliconInvestor All Stars Forum -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (289)	2/26/2007 12:07:08 PM
From: Box-By-The-Riviera™	Respond to of 1718

its all rather superficial at the moment. the real question in my mind is when/if we start moving into the prime categories along with calls on the insurances.....which in the latter case will more than likely spill into other derivated debt categories. we'll see. no doubt a whole bunch of folks are quietly thinking about that.

To: John Vosilla who wrote (289)	2/26/2007 1:49:06 PM
From: SouthFloridaGuy	Read Replies (4) \| Respond to of 1718

Prices move down when the collateral backing them is shit. The underlying equity collateral of US companies is solid and undervalued. Subprime ABS and US corporate debt <and hence equity> are just not comparable. The only way stocks fall is if the Michael Shedlock doomsday scenario proves correct: housing Bubble is so enormous that the subsequent sector credit crunch cripples the US economy and brings down other sectors with it in a deflationary wave. I don't remember the TMT debt bubble bringing down housing (in fact it stimulated it) so I'm not sure why the opposite is true. No market indicators even remotely point the to the mishedlo theory being even 2% probable.