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

To: Hawkmoon who wrote (110852)	3/17/2008 9:03:50 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

"Other Opinions?" Yes. bloomberg.com This is the GOOD stuff. It's all rated AAA and it's mostly garbage. If the AAA stuff is garbage, what is the rest worth? The market did not over react with Bear Stearns.

To: Hawkmoon who wrote (110852)	3/17/2008 9:32:33 AM
From: MulhollandDrive	Read Replies (3) \| Respond to of 306849

I think it makes logical sense. After all, predictive analysis requires some basis of precidence to be effective. And without that, it's pretty simple to just continue declaring all of these assets are worthless (when the fact is that the real property backing them up is not, even if Real-Estate values decline 50%). Other Opinions? so the idea is that the market goes into stasis for a solid year? i realize it is difficult to mark to market the bad loans with no historical precedent read: Message 24407521 unfortunately the banks know what each other has on their balance sheet and what they know is unknowable<gg> how does a formal recognition of that paper being 'unknowable' foster confidence to lend? ok, so we're back to 'we don't know what we don't know'(did we ever leave?).... and let's just call it AAA for a year and back to business as usual? would you step up to the plate and take the $h@t sandwiches as collateral under those circumstances? by now it should be crystal clear by now that the FEAR is of being the bagholder of the 'unprecedented' loans that were made in a declining RE market goes to a risk management decision that SHOULD be obvious the securitization process has hopelessly muddied the waters as to what's viable as collateral and what is not oh and one other thing....if mark to market should be frozen for a year, should we not also back out the paper 'profits' as well?