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


To: Johnny_Blaze_420 who wrote (150287)9/25/2008 1:55:16 PM
From: patron_anejo_por_favorRespond to of 306849
 
That's the main reason for attention to CEO compensation. It's a grotesque sideshow that add's or subtracts almost nothing to the cost of the bill, other than for clowngressional incumbents to wave it in front of the enraged masses as a sign that they "nailed the bastards".



To: Johnny_Blaze_420 who wrote (150287)9/25/2008 2:01:25 PM
From: MulhollandDriveRead Replies (1) | Respond to of 306849
 
If they actually pay fair market value on these assets, which is 5-45 cents on the dollar, depending on the tranche, they yes, holding to maturity will probably be breakeven or profitable.

5 - 45 cents on the dollar is a HUGE spread.....i keep hearing 65 cents on the dollar being bandied about ...... (guys like bill gross who is willing to 'manage' this for free, cough, cough)

when you get down to it, i think there is a perverse incentive for the government to pay an inflated price for the assets, especially considering that a unique aspect of mortgage securities is that the underlying security....HOUSES and CRE...support municipal and state governments with property taxes....the government is desperate to keep this asset class INFLATED....can they pull it off? if they can, i think it will be a first...i can't recall any BUBBLE over history that was successfully re-inflated