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User Info	What am I missing about ABX ?; entered at 2007-12-02 11:54:02
Jkilkelly Posts: 1561 Registered: 2007-07-20 Mercer Island WA	Perhaps the details behind E-Trade's mortgage investment portfolio can shed some light as to whether this problem is much larger than the "subprime" borrower who is current now on the Teaser but wouldnt be able to make the payment on reset so we will save them. I think all along we have heard how small or contained this problem is - you know just subprime and only a small subset of this pool. But step by step we are hearing problems in the prime/ Alt A. It appears now with the loose lending standards that in fact there is very little reliance one can place on the credit worthiness or inherent risk levels of prime/Alt A. it is beginning to look like it is just one large pool of serious risk. The E-trade portfolio had - from what I have read - 70% money purchase firsts that were categorized as prime borrowers. This is where the bomb lies. 2007-12-02 11:54:02