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

To: Lizzie Tudor who wrote (154195)	10/4/2008 11:19:19 PM
From: Pogeu Mahone	Read Replies (1) \| Respond to of 306849

The hedge funds are already all over these portfolios. carlyle, cerberus,etc have offered to buy these 20 cents on the dollar right here and now. Later 5 cents on the dollar because this is not wine and does not get better with age. ================ The problem is there is no way to separate out the wheat from the chaff here or any other of these trusts. What the fed needs to do is buy this for .20, chop it up and separate out the good loans. If they were buying these for .60, that would be a different story but buying a toxic portfolio with a weighted avg loan to value of 73% for something under .30 on the dollar is not that bad of a deal.

To: Lizzie Tudor who wrote (154195)	10/5/2008 11:36:40 AM
From: JBTFD	Read Replies (1) \| Respond to of 306849

"Take the total percentages of each of these, and devalue ALL subprime to zero, all loan to value over 80% to zero and all maturity over 360 months to zero. I don't do anything with the credit scores, I don't think those matter. If you can find any with state locations of these with midwest states or MI or some others where real estate tends to lag, devalue those to zero." I don't understand how one can reasonably say the value of all of these is zero. I think the people buying these are looking at this part of the portfolio as buying the real estate, which is certainly not at a value of zero, even if one considers the costs to get back the title.