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Originally Posted by KeelHaulin
I think those numbers in loan dollars; are what the securities are valued at at maturity.
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NO. they are loans outstanding. No one has numbers on mature MBS's.
Quote:
Originally Posted by KeelHaulin
The problem with this is that it is a projected number based on what the loans will yield in expected interest;
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No
Quote:
Originally Posted by KeelHaulin
The problem is that the home flippers have pumped the real estate market up to the point where the balloon was so over-inflated it did not just deflate; it exploded! The securities are dropping in projected value because each week more people walk away.
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Yes, this is one of the reasons, but not "the" reason. You left out foreclosures based on losing a job, or based on the monthly payments increasing beyond the means of the people to pay it.
Quote:
Originally Posted by KeelHaulin
I think the fed should buy the securities at a value that would assure us a profitable return based on the worst case value (I know this is somewhat unknown).
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This is exactly what I don't want. It's also why the bill was rejected yesterday. On what basis do you advocate putting this bill on us, the taxpayers? These investment banks reaped huge returns on these MBS's for years, they can eat the pipe on them now. We don't live in Denmark. This is America's free enterprise system.
Quote:
Originally Posted by KeelHaulin
Something stinks; and IMHO it goes back to the Fannie/Freddie debacle, corrupt government (both parties), the election (as a distraction), an outgoing president (to sign-off on the 700B payout), and Paulson (who previously worked for Goldman Sachs). Conspiracy theory for a 700B heist?
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Here you call it a heist. In the last paragraph, you actually advocate the bailout. Which is it??