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

To: saveslivesbyday who wrote (149691)	9/23/2008 9:29:27 PM
From: neolib	Respond to of 306849

So are you implying that the buyers of these MBS and derivatives didn't realize the risks involved? I'm pretty sure that many buyers of many types of assets didn't. A town in Norway (??) buying MBS, or a substantial fraction of those buying municipal auction rate securities (good as cash, LOL!) comes to mind as examples. For that matter, MMs as we just saw last week. Neo, if you had to move and sell your house immediately for a loss, would you complain that 1. Real Estate is an illiquid investment, and it's taking longer than you would like to sell, and 2. that it's not fair to value the house today, when it was worth more when you bought it, and you believe it will be worth more in a few years when "the market recovers"? Wrong example. Sure you would sell cheaper if forced quickly, but the market still works. The example you should have used is what if 50% of the town you lived in needed to sell this week. Details...