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Old 04-14-2008, 06:43 PM   #12
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Join Date: Oct 2007
Location: New York
Posts: 742
Dex 1, Hussman 0.

Hussman's logic is flawed for the MBS market (and for CDOs derived from them), although its reasonable as far as the housing market itself is concerned. Banks can get this behind them once they get the model inputs right. (assuming they have the capital!) But the housing market will keep heading south as long as that inventory of foreclosures keeps increasing faster than buyers.
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