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

To: 10K a day who wrote (133323)	7/12/2008 10:20:29 AM
From: RockyBalboa	Respond to of 306849

That was a triumph of salesmanship, or not. It has been cited that worldwide, not enough treasuries were around because of reduced issuance and low federal deficits in the 90s and up to mid 2000. At the same time particularly in Europe private endowments opened up (to supplement and replace public pension plans) and collected billions in contributions. So FCBs and endowments had to put the money someplace , so the poured it into slightly yield enhanched agencies. Ultimately we pay the price for the liquidity glut which was prolonged after 2001. That meant: irresponsive central banks, low money and treasury rates, flat curves but bubbling asset prices; and thus overpriced semi federal debt with relatively low yields (not covering default risks).

To: 10K a day who wrote (133323)	7/12/2008 12:38:09 PM
From: Jim McMannis	Respond to of 306849

RE:"It puzzles me that Housing GSE's can create 5 trillion dollars of debt. Pass it along to China or whoever will buy it. and not be accountable for any of it. (Hide behind a corporate veil ect) What a business model if you can get it..." Sounds like a good scam...try it.

To: 10K a day who wrote (133323)	7/13/2008 12:23:31 AM
From: RealMuLan	Respond to of 306849

Chinese are smarter than you are willing to gave credit for, believe it or not! Wonder why Chinese gov. dragged their feet to invest in Bear Stern right before Bear Stern collapsed? Wonder why China refused to buy more US mortgage debt in July 2007 when the scam artist, i.e. the U.S. HUD Secretary made an emergency visit to China to solicit their investment, and claimed everything was fine with the US housing market and sub-prime debt, only to see it collapsed one month later? China has done some stupid investment, no doubt about it, but they sure have learned some lessons too.