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

To: GST who wrote (87831)	10/21/2007 11:01:02 AM
From: Giordano Bruno	Read Replies (2) \| Respond to of 110194

Penalty-free 401K tap (must be repaid in 3 years) for distressed homeowners. coleman.senate.gov

To: GST who wrote (87831)	10/21/2007 12:34:33 PM
From: John Vosilla	Read Replies (2) \| Respond to of 110194

Not only is the true asset value way below par but the cash flow these assets would generate for whoever is the end user are so abysmal today not even coming close to supporting the perceived writedown values. Say you have an overbuilt area in AZ or FL a house was valued at $300k, zero down mortgage,now worth $200k but rents for only $lk (takes 4-6 months even to rent it) and has operating carrying costs of $700/month. Big problems in finding end users to fill all these vacant properties up without significant further collateral damage.. This with birth rates down given how stretched many young today are along with much tougher immigration policies and tighter credit conditions..