mavericks

Why We're Still in the Early Innings of the Bursting of the Housing and Credit Bubbles - And Implications for MBIA and Ambac

Who will buy those $325K homes? Plug in dual income buyers (pretty common) and all of a sudden your model works fine. I live in a metro area of the NW and $250-$450K homes still move very quickly if priced correctly. It's the $500K and above market which is suffering the most.

Why We're Still in the Early Innings of the Bursting of the Housing and Credit Bubbles - And Implications for MBIA and Ambac

Though I found the presentation compelling, I do think this is a classic example of talking one's book and trying to take advantage of a dire situation. Perhaps Mr. Tilson is trying to make up for his lack of performance in his mutual funds which have dramatically underperformed the market (though better in '08 since I'm sure he is using some hedging strategies). Still, I get the feeling that if Mr. Tilson were a mortgage broker, he would be knee deep in the muck which now covers our landscape.