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

To: Hawkmoon who wrote (110859)	3/17/2008 9:23:56 AM
From: Smiling Bob	Read Replies (1) \| Respond to of 306849

I wonder how many homes purchased in 05-06 were truly owner occupied. No way of telling due to misrepresentations on docs. Depending on historical norms and just throwing out numbers, 50% of those so-called AAA tranches could be investor/speculator walkaways and 25% could be sub-primes leaving maybe 25% as potentially good loans- or worse. The total RE value backing them could be a lot less than 50% There's a flood of uncertainty for good reason

To: Hawkmoon who wrote (110859)	3/17/2008 9:24:18 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

That's the cream of the crop and a lot of it doesn't meet the established rules for being investment grade. In my book that makes some of it highly speculative and the rest of it garbage. Are you interested in buying bonds where the payments are at risk and the fundamentals behind the bond are deteriorating by the day? No one wants this stuff because they know it's garbage. Wall Street ran out of suckers to sell this stuff to. The market for this stuff is not going to miraculously start back up, at least not at anywhere near current levels.