I read his argument as something like this: “The smart buyers out there do not yet see value at the prices these things are selling formarked at.” Presumably, their valuations are based on the future income streams of the TLAs. So yes, I agree that the funds Mr. Mortgage speaks of can’t soak up all the supply, but they can put a value on these things based on expected future income streams.
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I can’t speak to this individual investment in IndyMac because I don’t know enough details, but John Paulson, the one guy who’s made more money on the real estate/banking decline than anyone else, is buying…
It’s completely anecdotal, but at least one guy that folks have universally deemed to be “smart” on the credit front is now taking the other side of the trade in some manner. Of course it could still blow up on him, but someone out there is seeing value in these turds. Only time will tell.
