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

To: GraceZ who wrote (149392)	9/23/2008 1:02:35 PM
From: Travis_Bickle	Read Replies (1) \| Respond to of 306849

If they stick to buying whole loans it would certainly make it easier. If they are contemplating loans that have been sliced and diced it is very possible they will be buying assets with no value whatsoever. I don't really care much either way, usually I root for maximum carnage.

To: GraceZ who wrote (149392)	9/23/2008 2:01:14 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

yeah, you're agreeing with paulson that we're at financial defcon1 and if the mother of all bazookas isn't fired we're all dead.... problem is he fired the bazooka repeatedly and it's not quite working out the way he expected... and when this plan doesn't work, what does he do for an encore.... oh wait.....he'll be gone by then there are several proposals that have been floated that do not put the taxpayer on the hook (notice paulson already says we are...he doesn't say exactly how, but he believes it) the very best case scenario in paulson's plan is the taxpayer pays ENOUGH for the illiquid 'assets' to make the banks whole....i happen to believe if he does that, by definition we'll have overpaid and assuming buyers from the private capital markets can be found, we'll be selling those assets at the steep discount the banks refused....otoh and if he buys them at current marks or below, the banks are dead and btw.... you really need to throw historical default rates out the window....CLEARLY we have experienced a real estate BUBBLE of unprecedented proportions....and also, understand that even now, paulson is not excluding ALL types of debt (student loans, CC defaults, auto loans)....by suggesting such he's implicitly saying that we are headed for massive debt defaults not limited to housing....the treasury will literally have to print finally starting to hear some reason in the hearings....corker saying that 14 days isn't too much to ask for advise and consent.... so i guess we'll see if it's TEOTFWAWKI...

To: GraceZ who wrote (149392)	9/23/2008 4:56:19 PM
From: jrhana	Read Replies (1) \| Respond to of 306849

I saw this statement and was sitting here thinking smugly that I've only got a few dollars in money market funds-then in a whoops moment, I just realized that my living expenses for the rest of the year were sitting in whoops a money market fund. So I just ran down and wired that money into my checking account. I hope Armageddon doesn't hit before tomorrow morning. Thanks for the heads up. <I think the knee jerk reaction to dismiss the plan as simply a WS bailout is understandable, but short sighted. At this point where this mess is headed is 2.2 trillion in institutional money market funds suddenly becoming illiquid and NO ONE would be spared the fallout from that. It's an amount greater than M1 going poof.>