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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (79190)	1/26/2008 1:02:37 PM
From: KyrosL	Respond to of 94695

Thanks.

To: robert b furman who wrote (79190)	1/27/2008 7:35:58 PM
From: Bubble Watcher	Respond to of 94695

Thanks. That was educational. I read somewhere that some mortgages, repackaged as Structured Investment Vehicles, weren't done in a way that gave the bond holders recourse if the mortgagee defaulted (at least one court case.) I recall hearing that and then observing SIVs significantly tank. Don't know cause and effect. I really think Congress and Fannie Mae have some culpability. Here in the Washington area, they (FM) had constant ads on the local radios to the effect they wouldn't rest till everyone in the US could afford a home. I took it to mean "we give home loans to people who aren't credit worthy." I think you package those two things together (bad SIV bonds and politically driven loans) and you see what we got. Incidentally, around here it looks like the pain is in the high end market (jumbos), not the low end. Thanks again. Bubba