vreporter

Some Subprime Mortgage Loans Are Actually Current

There is far too much inter-dependence between subprime and everything else that's wrong with the housing situation nationally. There certainly are lots of gloom and doomers to portray the situation in a light that may not eventually happen. But may I remind you that we got to this stage because of the lack of transparency about these portfolio strategies underlying the financings - and that problem still remains. So when all things are considered, the gloom and doomers may still be underestimating the net effect when one begins to address inventories of both new and existing homes, the flippers who are now being issued blindfolds and the layoffs from a slowing economy. You make very valid points about the differences within these tranches but that issue alone turns out to be minute compared to the headwinds that are tipping these into the doom and gloom category for varying reasons. In the current scenario, the big picture matters a lot more than the risk management approach to a few securities.

Housing Bubble and Real Estate Market Tracker

newenglin you have no clue!

PIMCO has been warning about this situation for over a year and has been criticizing the agencies that should be doing the same! They are just coming out of the woodwork now and Gross is merely ensuring transparency about their ethical obligations.