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

To: stomper who wrote (109177)	3/11/2008 8:57:26 PM
From: James Hutton	Read Replies (2) \| Respond to of 306849

This is just a high-falutin' "we'll give you $50 for any handgun you bring to us" program. And it will likely be as successful. At least in those programs, the governments can get some value out of the metal. Does anyone really think the government is not going to get stuck with this worthless paper, or will "lend" far more than it is worth? Remember, this is the entity that valued toilet seats at $600 twenty-five years ago. What's offensive is that the government knows AAA is essentially meaningless. What happens if the paper is downgraded within the 28-day lending period?

To: stomper who wrote (109177)	3/11/2008 9:08:37 PM
From: James Hutton	Read Replies (1) \| Respond to of 306849

Sorry if this was already posted. bloomberg.com

To: stomper who wrote (109177)	3/11/2008 9:45:55 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

re: There are mountains of tranches out there that are rated AAA and have half their make up at 90 days delinquent and they are still rated AAA by the agencies. The ratings agencies have been downgrading AAA tranches like mad for the past two months, and many more are on credit watch. At this point there is an awful lot of stuff out there that is no longer AAA. Given that over 90% of people pay their mortgage on time each month, I would tend to think the majority of the remaining AAA not on credit watch is pretty good. If the monolines suddenly stop ponying up on insurance for insured tranch defaults things will deteriorate overnight. For now, AAA still means something, Just not what it used to.