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


To: saveslivesbyday who wrote (109006)3/11/2008 10:17:35 AM
From: Think4YourselfRead Replies (1) | Respond to of 306849
 
My logic is that their primary goal right now is to jump start the liquidity markets. IF they succeed, and this approach might actually do that, then mark to market writedowns could be reversed in the near future. That would make the books of companies that took those writedowns much more appealing.

I agree the deleverage needs to continue, and probably will. This morning's action, and future similar actions, could slow it to much more manageable levels, removing much of the current panic.

There is one other factor that makes me bullish short term. Almost everyone is bearish.