cjct

Don't Listen to Goldman on Commodity Prices

Couldn't agree more on GS commodity analysts. Same goes for the UBS insurance analyst who just downgraded AIG from buy to hold after riding it all the way down to 1.60...immediately after which AIG stock turned around and closed up 17% for the day. Pretty much as good a contrary indicator as their is, just wonder why they get paid any money since the I-banks could just install random Buy/Sell/Hold generators and produce the same manipulative effect.

The Hedge Fund of America, LP

Worst case scenario for Treasury is it buys the MBS's and the homeowners default on the mortages. Even should that occur on a large scale, there is still underlying (although deteriorated) value in the house and the land it sits on. Certainly the government could auction off this property to recover 20-30 cent son the dollar which is basically what the MBS's are likely to be purchased for in the first place.