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To: marcos who wrote (45781)	7/27/2007 2:06:53 PM
From: E. Charters	Respond to of 78421

I think there is some selling to cover margins, and also some selling to meet obligations due to oncoming rise in debt payments. Bloomberg reports that S&P may cut credit ratings on $12 Billion of subprime mortgage bonds: July 10 (Bloomberg) -- Standard & Poor's said it may cut credit ratings on $12 billion in bonds backed by subprime mortgages because losses will rise beyond its previous expectations. Ratings of 612 classes of residential mortgage-backed securities were placed on CreditWatch with negative implications, New York-based S&P said today in an e-mailed statement. The bonds represent 2.1 percent of the $565.3 billion of similar bonds rated by S&P during 2006. "We expect that the U.S. housing market, especially the subprime sector, will continue to decline before it improves, and home prices will continue to come under stress," S&P said. "Weakness in the property markets continues to exacerbate losses, with little prospect for improvement in the near term." Investors have criticized S&P, Moody's Investors Service and Fitch Ratings because their ratings on bonds backed by mortgages to people with poor or limited credit don't reflect the fastest default rate in a decade. Prices of some bonds backed by subprime mortgages have declined by more than 50 cents on the dollar in the past few months while their credit ratings haven't changed. "We do not foresee the poor performance abating," S&P said. "Loss rates, which are being fueled by shifting patterns in loss behavior and further evidence of lower underwriting standards and misrepresentations in the mortgage market, remain in excess of historical precedents and our initial assumptions." ******************************** Mortgage resets: Record bill coming due Les Christie CNNMoney.com Tue, 10 Jul 2007 17:25 EDT The Loan Gunmen The Crash of 1929: Are We on the Verge of a Repeat? More than two million subprime adjustable rate mortgages (ARMs) are poised to reset at much higher rates in coming months, worsening an already suffering housing market. Borrowers who took out hybrid ARMs in 2004 and 2005 to secure low "teaser" rates for the first two or three years of the loan may see their monthly mortgage payments climb by 35 percent or more. Consumer groups and politicians worry that hundreds of thousands of subprime ARM borrowers will be unable to keep up with their mortgage payments and will lose their homes. "In October alone more than $50 billion in ARMs will reset," according to Mark Zandi, chief economist and co-founder of Moody's Economy.com. That's a record, according to Zandi. *********************************

To: marcos who wrote (45781)	7/27/2007 2:20:24 PM
From: loantech	Respond to of 78421

Market may close green today as measured by the dow we are coming back.

To: marcos who wrote (45781)	7/27/2007 2:20:26 PM
From: loantech	Respond to of 78421

Market may close green today as measured by the dow we are coming back.

To: marcos who wrote (45781)	7/27/2007 2:20:29 PM
From: loantech	Read Replies (1) \| Respond to of 78421

Market may close green today as measured by the dow we are coming back.

To: marcos who wrote (45781)	7/27/2007 10:33:04 PM
From: koan	Read Replies (2) \| Respond to of 78421

Marcos, your idea is sort of at odds with the speakers on bloomberg. I do not understand very clealy what is going on, but the guys like Bill Gross are very scared. The sub prime market is drying up which is going to create many problems going forward. I am sure slan sees it everyday in his work. This is a fundamental worldwide problem, ergo, the time of year has no real relevency. People are panicing. I am getting several phone calls a day exhibiting great concern and have clients who are stuck in this real estate meltdown. Fastest fall in home prices since the great depresion. New home sales were supposed to be down 2% and dropped 6.6%. Cheers, I think this is a big deal marcos.