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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: XoFruitCake who wrote (76259)	4/18/2007 3:39:30 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 306849

I don't think DSL loan portfolio is anything like 10 years ago...pay option arms weren't even in use then. 100% loans were pretty much unheard of as well.

To: XoFruitCake who wrote (76259)	4/18/2007 4:47:17 PM
From: Perspective	Read Replies (1) \| Respond to of 306849

Sure, the loan losses may still be a few months away (Jesus, is Wall Street so myopic that they'll buy based on a time horizon that doesn't even extend to the rest of 2007? ) however, their earnings depend on mortgage volumes, and if the real estate bubble is really done, then volumes should be returning to something more "normal", ie before the 2003-6 period. Originations should fall well over 50%. How can that support the present price, even without considering the subprime/AltA default concerns? BC