Texas Proud
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 16, 2005
- Messages
- 17,339
Brewer...
You probably have seen how the CMOs are structured... I handled insurance trusts and some CDOs, but knew people who did the CMOs... some have HUNDREDS of traunches...
Now, this total risk has not been changed at all.. so there are some who are winners and some who are losers.... it is kind of hard to ask a winner to give up his 'win' to bail out the loser...
If you had bought an IO, then I would think that it would have some value as the interest rate goes up with only a certain amount of defaults... but if to many defaults then it might not be... but if you keep interest low, then for sure you lose..
We will see what happens... but I still think it should be 'the market' that fixes the problem without any bailout money from the gvmt... talk is fine, but $$$$$s are bad.
You probably have seen how the CMOs are structured... I handled insurance trusts and some CDOs, but knew people who did the CMOs... some have HUNDREDS of traunches...
Now, this total risk has not been changed at all.. so there are some who are winners and some who are losers.... it is kind of hard to ask a winner to give up his 'win' to bail out the loser...
If you had bought an IO, then I would think that it would have some value as the interest rate goes up with only a certain amount of defaults... but if to many defaults then it might not be... but if you keep interest low, then for sure you lose..
We will see what happens... but I still think it should be 'the market' that fixes the problem without any bailout money from the gvmt... talk is fine, but $$$$$s are bad.