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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (21087)	6/29/1998 6:54:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 94695

ARMs, You paid to much for Adjustable Mortgages , because you didn't think the rates would go so low. As you bought them you also used them as collateral to buy other stuff, like Interest Only Slips. Your collateral is now so stretched you have to sell the ARMs cheaper than you bought them. On top of that your cash cow was the spread between short and long term rates, that has gotten so skinny the premium you paid to get them in some cases now is more than the spread. There is two sides to the fall in interest rates, & these guys were on the short end of the stick. I'm surprised it hasn't shown up in some banks too. But I do think the stock got over sold, even if they gut the divedend from 50 cent to 25cent it will still be at 11% interest to me. I'm hoping I picked a bottom on this thing..so far it looks like maybe I hit it with my first shot <g> -------------------- Jim