Quote:
Originally Posted by chucklesR
Off by a factor of a bit, the below is a bit old (2004 data) says the ENTIRE market, not just the 6% defaulting is oh, 1000 times smaller than the 775 TRILLION you quote:.
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First use 2007 numbers, a lot has changed since 2004. Namely sub prime
Next where are your Hedge fund numbers? Dirivitives?
You can't play the numbers game without the multipliers. It's what makes everything so scary.
Just when I thought I'd gotten away clean... I got sucked back in again...(sigh)
This from a Bloomberg article last week concerning the decision to bail out Bear Stearns. I'd post the entire article, which is very good, but who am I kidding...who would bother reading it?
March 15 (Bloomberg) "...... The cost of doing nothing may have been even greater, say other former Fed officials. Bernanke is attempting to keep the nation's financial machinery working as record home
foreclosures make investors reluctant to hold even bonds backed by Fannie Mae and Freddie Mac, government-chartered firms. The 54-year-old Fed chairman is also trying to contend with a worsening economic slump: Reports this week showed that
retail sales unexpectedly fell and
consumer confidence slid to a 16-year low....."
Now, what does this mean? anyone?
It means that there would have been
NO MORE MORTGAGES...PERIOD.... If an investor converts to USD and then buys a bond where 6% default (Sailaway's Number...but it's correct, I checked), just how is he making money?????? He isn't, and he won't do it. MBS fund our entire real estate market. Fannie Mae... Freddie Mac... Bank of America... wells fargo....etc...... it's how the banking system works. Doesn't anyone read my posts? I know.... Stupid question ..
This is why Bernacke bailed out Bear Stearns and will bail out any other investment bank that defaults for that matter.
I have a main sheet to change out.... who bothers reading this thread anyway....