Single Post Display - MarketTicker Forums


	Detailed market commentary at The Market Ticker and Ticker Classics (The Year 2011 In Review) Donations accepted; we offer GOLD ACCESS for enhanced privileges. T-Shirts, caps, coffee mugs? Click here. BlogTalkRadio - Mondays at 3:30 Central - Yes, TickerGuy has a radio show (kinda) RSS available

MarketTicker Forums Single Post Display (Show in context)

User: Not logged on

User Info	Paulsen Works With Industry on Loan Plan; entered at 2007-12-01 11:07:36
Aztrader Posts: 6138 Registered: 2007-09-10 Scottsdale, AZ	All this freeze does is delay the defaults. They haven't talked about who would qualify, but by including people with interest only loans, they are just doing this to give the bond portfolios a new "phony value". They will claim that the default rates have dropped and payments are being made, so the bond portfolio is really worth par vs. the ABX value of maybe 50 cents on the dollar. It would help the banks and lenders to dump this crap on more unsuspecting investors who will then inherit the default when it happens. If we look at the current crisis whereas the money markets (commercial paper) is locked up because the banks don't trust each other, what will change this if the freeze lasts only two years. It's like buying a 10 year bond rated AAA, knowing that after two years, your default risk becomes substantial and the rating drops to D. Who would buy it? Only a complete fool or maybe Cramer. 2007-12-01 11:07:36