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

To: MulhollandDrive who wrote (109212)	3/12/2008 8:13:48 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

I did look at the contents of the ABX last night. What a bunch of crap! It's pretty clear the rating agencies have failed to do any type of due diligence in regards to the ABX stuff. I'll wholeheartedly agree that this plan is a scam if I can determine that either: 1. The bonds are not insured or 2. The monolines are unlikely to pay off on their insurance commitments. Until then I still don't see a problem with the plan. The bonds will pay off, either because they are good or because the monolines will be forced to make good on their insurance, or they will be downgraded. When they are downgraded they will no longer be acceptable as collateral. That research has also convinced me to reshort the monolines.