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MBA, Negative Rates, NYT Graphic, Simple As That, Hear It Pop

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MBA Expresses ‘Deep Concern’ Over Proposed GSE Delivery Fees - has links to letters sent by MBA to GSEs - housingwire

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good chart - Real Interest Rates Are Negative … Subtract the 12-month change in the consumer price index from the month-end CBOE 10-year Treasury Note yield ($TNX). - The Big Picture

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neat graphic - NYT: Blaming the Fed for the Sub-Prime Mortgage Crisis - The Big Picture

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worth reading - thanks OWen Eldridge - FSU Editorial: “Housing - Simple As That” by Christopher Martenson 12/17/2007 FSU

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You Can Almost Hear It Pop - thanks Owen - Steve Roach MorganStanley - NYTimes http://www.nytimes.com/2007/12/16/opinion/16roach.html

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Victor’s Trade Idea, Ira Has 3, Herb Greenburg, Felix Salmon

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Victor Hong Trade Idea - thanks V -

Here is a great trade idea. MBIA, AMBAC, FGIC, and CIFG should all sell default protection on themselves. Why? They can thereby add “AAA” exposure to their credit portfolios, but earn big, juicy “BBB” spreads. If they remain “AAA”, the running spreads will be easy income. If they default, well, they will not be alive to suffer the losses from this trade.

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from Ira Artman - thanks Ira -

1. The Art of Crisis Management: Auctions and Swaps - The financial crisis of 2007 is bringing out the creative side of the worlds central bankers. Finding traditional instruments wanting, they spent the last month or so fashioning new tools and resurrecting old ones. Here are the FAQs on what they did, why and what it might mean. - VOX

2. The Subprime Mess and Your Portfolio, Part 2 - Which funds have been hurt the worst by subprime woes? - Morningstar

3. Subprime Truths and Consequences - The continuing credit crunch spotlights the perils of leverage. How should your clients respond - financial-planning.com

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Extrapolating Downey Financial’s Option ARM Problems To WaMu - by Herb Greenberg - MarketWatch

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Citi: Still Partially Insulated from SIV Losses - by Felix Salmon - portfolio.com

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UberNerd, Bump In The Night, Marijuana Houses, BankUnited NegAm, Hope Now, E&O Litigation, Securitization

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Reference - save this - Definitions of all that is going on - The Compleat UberNerd - calculated risk

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Things That Go Bump in the Night - includes - 1% Growth plus 4.3% Inflation = Stagflation - John Mauldin’s Weekly E-Letter

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Marijuana stated income houses - One Good Bongwater Deserves Another - by Tanta - calculated risk

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BankUnited Negative Amortization Update - look at numbers highlighted on chart - Credit Bubble Stocks

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HOPE NOW: One Step to Resolve the Subprime Mortgage Crisis - by David C. John and Alison Acosta Fraser - WebMemo #1742 - Heritage.org

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Report on Subprime Litigation Risk Published - Guy Carpenter & Company, LLC published a state-by-state overview of the threat of errors & omissions (E&O) litigation on U.S. real estate professionals. - riskcenter.com free reg.

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Subprime test: Did securitization work? - Securitization, hailed as the greatest financial innovation of the 20th century, isn’t getting such rave reviews anymore after this summer’s subprime mortgage crisis exposed some weaknesses. - MarketWatch - thanks brokerwatchdog