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(The Year 2012 In Review)
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|User Info||Market Ticker slam on PM's and PM stocks; entered at 2007-12-01 17:27:07|
"E*Trade today provided the latest validation of this thesis. Their disclosure today was horiffic; the implication of the loss of $1.5 TRILLION in real value in HELOC's alone ought to send shivers down your spine. It sure did mine - that's $22.5 Trillion in lost lending capacity, or some two and a half times the national debt of the United States."|
Sorry, these weren't straight HELOC's. These were the Company's non-confirming ABS and include ABS backed by second lien loans. Comparing them to WAMU's straight loan book is incorrect IMO. Yes, It is ugly but to write down WAMU's loans at 27 cents on the dollar is too harsh.