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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Boca_PETE who wrote (101518)	2/20/2009 8:13:07 PM
From: Broken_Clock	Respond to of 110194

I believe monetizing the massive debt to create enough inflation to stabilize real estate values will help stabilize the economy. --- The sad truth is that you must have a stable job market with inflating wages or an expanding job market with stable wages in order to drive up affordability and RE prices. W/o either scenario we are doomed.

To: Boca_PETE who wrote (101518)	2/20/2009 10:23:57 PM
From: Skeeter Bug	5 Recommendations Read Replies (1) \| Respond to of 110194

>>If the core cause of the current credit collapse is falling real estate values<< believe it or not, that's small potatoes compared to the real issue here. look at these numbers - and keep in mind that the value of all outstanding mortgages in the USA is about $11 trillion... ------------------- BAC has as much as $38.2 trillion in derivatives exposure and $3.4 trillion in CDS C has as much as $40.0 trillion on derivatives exposure and $2.5 trillion in CDS JPM has as much as $92.0 trillion in derivatives exposure and $9.5 trillion in CDS ------------------- would you lend money you really needed to an insolvent friend? the banks won't, either. the worse the economy gets, the worse the housing markets get, the more those "exposures" turn into liabilities... unfortunately, those "exposures" are unfunded. doh!