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

To: MulhollandDrive who wrote (109041)	3/11/2008 12:03:37 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

I do agree with your analysis in general but will the fed forgive or just renegotiate in the event of default? The banks have a unique monopoly that almost guarantees profitability. The fed can just reduce and spread out the interest payments over time until paid off. The markets are looking a bit weaker but I am holding my calls for now. This still seems like it will turn out to be a key bear market rally point, at least for the financials. BSC is the wild card.

To: MulhollandDrive who wrote (109041)	3/11/2008 12:04:37 PM
From: Smiling Bob	Respond to of 306849

my guess is the bad paper goes to the fed and if the banks default on the interest payment, the fed forgives....after all, that's what ben is telling all the lenders to do, isn't it? That's it exactly Give us your bad paper, shore up your balance sheet, and we'll let the taxpayers foot the bill. WS prefers you to see the sizzle, not the decomposing roadkill.