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To: Perspective who wrote (8694)	9/24/2008 2:18:25 PM
From: Galirayo	Read Replies (1) \| Respond to of 41414

Beats the heck outa me .. I'm just trying to look at this entire situation as best I can from a different view. Back in 1980ish I learned that you could invest in Discounted Mortgage Paper. You may be well versed on the concept / vehicle .. but in a nutshell [if I can explain it properly] you calc the Gross Cash Flow thru the Maturity Date and discount it by projected inflation to arrive at your desired Annual Yield and desired purch price. But .. and However .. and as a Major No .. No .. you don't use this strategy with 2nds. You use it with only the 1st .. Creating a 2nd and selling it is a Good Strategy too if you can stick a balloon on the end of a 5 or 10 year note to save some time value on the dollar .... But most Saavy RE Investors don't buy 2nds .. or 3rds for that matter .. They only Buy 1sts only 1sts .. and only if you control a bunch of equity in the case of a default ... so the Question is .. Why are they even talking about our taxpayer $$ going to buy Very High Risk 2nd Mortgage Paper ?? The Creators or Holders should just have to Eat all of that Subordinated Stuff if it's bad. Unless of course it was just "" Such a Deal !! "" ;) Nevermind .. that Bill Gross dude is on CNBC now he may explain it better. When in Doubt .. Change the Terms .. Change the Price. This needs to be like a Biz Transaction for the Gvmt. Not a Bail Out. They could call it G-Bay .. lol

To: Perspective who wrote (8694)	9/24/2008 3:52:39 PM
From: Galirayo	Read Replies (1) \| Respond to of 41414

Were you talking about what I said in this post ?? Message 24969683 >>Yeah, WTF is this horse$hit about "holding to maturity"<< If you were ... from what I understand the Avg 30 yr note gets Re-Fi'd in about 7 years. So .. Saying hold to maturity would still avg out to be a 7 year term. But they wouldn't actually need to hold them that long .. just long enuff for Housing Inflation to kick in a bit. Then they would be easily marketable for a profit. Maybe to FNM even with a new Mtg attached. They've already bailed FNM and FRE .. more than once.