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


To: Lizzie Tudor who wrote (109395)3/12/2008 4:08:19 PM
From: patron_anejo_por_favorRead Replies (2) | Respond to of 306849
 
The whole "mark-to-model" issue is simply a form of what Japan did. It's illiquid, therefore we value it at what we say it is. Along with Level 3 assets. The Fed taking MBS as collateral, and rolling it over indefinitely (it's not clear to me yet this is what they will do, but it's one possibility) is a clear step in that direction. If it 'unlocks' the market, and the market (CDO, MBS) continues to drop, what then?