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

To: ChanceIs who wrote (172870)	12/21/2008 10:30:24 PM
From: Perspective	Respond to of 306849

<debt in the regionals is some 60% real estate based.> That's my general read on them as well. I get concerned about the relentless push to save the banks, but I guess if that is causing others to hold off on shorting them, or making others buy the stock in anticipation of government largess, it means that the downside on them is potentially magnified in cases where nature is permitted to run her course. Most of the TARP funds I've seen distributed amount to maybe 10% of equity, around 1% of assets. That's like pi$$ing into an ocean at this point. Many of them have huge exposure to commercial RE loans. For those guys, it's strictly business. Upside-down? Let the bank have it. They're gonna get stuck holding the bag on tons of commercial. `BC