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

To: patron_anejo_por_favor who wrote (109145)	3/11/2008 6:53:26 PM
From: Smiling Bob	Read Replies (1) \| Respond to of 306849

It's smoke and mirrors. Plain and simple. Only because it helps the banks- the meat of WS- was the mkt up. If any other business or individual did this, they'd be prosecuted for accounting fraud. Can I trade some no bid puts for some treasuries? I hope they tear this apart overnight.

To: patron_anejo_por_favor who wrote (109145)	3/11/2008 8:42:50 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 306849

I think it will assist the housing bubble from collapsing in upon itself out of outright fear by investors of holding any mortgages.. The Fed has basically drawn a line in the sand with regard to AAA mortgages.. They don't care about Subprime, and only a bit of concern about Alt-A.. The banks are going to have to eat those loans. But they will help support the AAA bond market and let the banks amortize their losses over time.. At least that's my take on this.. And as was mentioned earlier.. they will only hold the debt exposure for 28 days, at which time the bank that borrowed the money will have to roll that loan over after having the worthiness of its collateral reassessed... If it fails to meet the Fed's criteria, the bank will have to pony up more collateral.. If anything, it should at least place some semblance of a bid under those mortgages until the private market comes in to take up some the load from the Fed. Hawk