Re: Back end adjustment to SUB PRIME
- From: Tony <v_geterix@xxxxxxxxxxx>
- Date: Fri, 10 Aug 2007 21:45:06 -0700
On Aug 11, 1:58 pm, "Joe Lee" <invalid@noaddress> wrote:
"Tony" <v_gete...@xxxxxxxxxxx> wrote in message
news:1186796956.551960.25100@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Given that folk who got a sub prime loan are now going to have there
loans re valued upwards and the banks are expecting hugh defaults I do
wonder why banks cant leave the interest rates alone for all sub prime
loans and simply extend the payment period and write in a caveat to
loan level at the time of future sale of the property so that asub
prime lender cannot beat the system.
That surely would keep junk alive and prevent all this termoil.
This just seems like agrab for quick money right now and since central
banks are pumping money into the system and normal banks are being
forced to buy government bonds then someone is ending up with a heck
of alot of money very quickly...my guess is the yanks are squaring
there books on the Iraqui war.
Yes, but maybe hugh won't default. if he's invested entirely in termoil then
he's got a greater than 20/50 chanve of remaining liquid.
--
Joe Lee
Well I can see how a hedge fund can default on a CDO thats not
performing but its hard to see how abank can default unless its
running ahedge fund on which it bases further investments and then
like Bears simply saying that they have 3 funds that are not
performing, but 3 or 4 funds that are not performing are not the cause
of any central bank putting in so much money for ordinary banks to
buy.
When a central bank puts in money for a bank to buy its because the
central government want money to pay bills and ther yanks have got big
bills to pay, the excuse seems to me to blame junk as a cause of
crises that allows ordinary banks an excuse to buy goverment bonds and
not fund M&A when the yanks have paid there bills the system will come
back to normal....but dont you hate the con.
.
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- Back end adjustment to SUB PRIME
- From: Tony
- Re: Back end adjustment to SUB PRIME
- From: Joe Lee
- Back end adjustment to SUB PRIME
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