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

To: critical_mass who wrote (84996)	8/14/2007 1:48:42 AM
From: Broken_Clock	Read Replies (1) \| Respond to of 110194

The problem with that analysis is that it leaves out: alt a pay option arm conv arm and most of all is that we are barely in to the reset tsunami Very flawed analysis. Like saying, "We are traveling at 80mph and just left the road, it is night time, but we haven't crashed yet!"

To: critical_mass who wrote (84996)	8/14/2007 4:14:41 AM
From: bart13	Read Replies (1) \| Respond to of 110194

Would you trust the competency of any banker that bought billions in US mortgages, but was not aware of the loose credit conditions? "A sound banker, alas, is not one who foresees danger and avoids it, but one who, when he is ruined, is ruined in a conventional and orthodox way along with his fellows, so that no one can really blame him". -- John Maynard Keynes

To: critical_mass who wrote (84996)	8/14/2007 6:56:20 AM
From: saveslivesbyday	Respond to of 110194

Aha - Derivatives, the missing link. Perhaps this is why "losses of about $33 billion to $34 billion" is causing the turmoil. It's not just that the mortgages won't get paid, but the bonds were apparently used as collateral for other highly leveraged investments - thereby magnifying these losses several fold. It wasn't just too many hedge funds chasing too few assets, but they were doing so with borrowed money. The books about this fiasco are undoubtedly being written as we type.