Bank of England Lays Down the Analytical Gauntlet on US Sub-prime Losses

[gdcox]

http://www.bankofengland.co.uk/publications/fsr/2008/fsrsum0804.pdf
See page 3.

For general interest.

The Bank reckons the valuation of mortgaged backed securities has gone way below what is justified by the real estate market

[patientrenter]

GD, the old lady of Threadneedle street desperately hopes that the real estate market doesn’t crater down to a level consistent with real market prices for mortgage-backed securities. “Desperately hopes” isn’t the same as “reckons”.

For us short-attention span Americans, can you just summarize the reasons given by the BoE why real estate will not go down a lot more?

Patient renter in OC

[patientrenter]

GD, the old lady of Threadneedle street desperately hopes that the real estate market doesn’t crater down to a level consistent with real market prices for mortgage-backed securities. “Desperately hopes” isn’t the same as “reckons”.

For us short-attention span Americans, can you just summarize the reasons given by the BoE why real estate will not go down a lot more?

Patient renter in OC

[patientrenter]

GD, the old lady of Threadneedle street desperately hopes that the real estate market doesn’t crater down to a level consistent with real market prices for mortgage-backed securities. “Desperately hopes” isn’t the same as “reckons”.

For us short-attention span Americans, can you just summarize the reasons given by the BoE why real estate will not go down a lot more?

Patient renter in OC

[patientrenter]

GD, the old lady of Threadneedle street desperately hopes that the real estate market doesn’t crater down to a level consistent with real market prices for mortgage-backed securities. “Desperately hopes” isn’t the same as “reckons”.

For us short-attention span Americans, can you just summarize the reasons given by the BoE why real estate will not go down a lot more?

Patient renter in OC

[patientrenter]

GD, the old lady of Threadneedle street desperately hopes that the real estate market doesn’t crater down to a level consistent with real market prices for mortgage-backed securities. “Desperately hopes” isn’t the same as “reckons”.

For us short-attention span Americans, can you just summarize the reasons given by the BoE why real estate will not go down a lot more?

Patient renter in OC

[34f3f3f]

The report is quite detailed so a summary would be useful. My limited understanding is that mortgage backed securities are not directly commensurate with real estate values anyway. They were a means of selling on wholesale debt in order to re-finance more selling of debt. Insofar as the two may appear inextricably linked, aren’t MBSs, CDO’s etc exposed as much to the whims of the securities market, as the real estate market?

BTW, I loved the metaphor of a little old lady threading her needle. I hope it’s not a camel she’s using.

[34f3f3f]

The report is quite detailed so a summary would be useful. My limited understanding is that mortgage backed securities are not directly commensurate with real estate values anyway. They were a means of selling on wholesale debt in order to re-finance more selling of debt. Insofar as the two may appear inextricably linked, aren’t MBSs, CDO’s etc exposed as much to the whims of the securities market, as the real estate market?

BTW, I loved the metaphor of a little old lady threading her needle. I hope it’s not a camel she’s using.

[34f3f3f]

The report is quite detailed so a summary would be useful. My limited understanding is that mortgage backed securities are not directly commensurate with real estate values anyway. They were a means of selling on wholesale debt in order to re-finance more selling of debt. Insofar as the two may appear inextricably linked, aren’t MBSs, CDO’s etc exposed as much to the whims of the securities market, as the real estate market?

BTW, I loved the metaphor of a little old lady threading her needle. I hope it’s not a camel she’s using.

[34f3f3f]

The report is quite detailed so a summary would be useful. My limited understanding is that mortgage backed securities are not directly commensurate with real estate values anyway. They were a means of selling on wholesale debt in order to re-finance more selling of debt. Insofar as the two may appear inextricably linked, aren’t MBSs, CDO’s etc exposed as much to the whims of the securities market, as the real estate market?

BTW, I loved the metaphor of a little old lady threading her needle. I hope it’s not a camel she’s using.

[34f3f3f]

The report is quite detailed so a summary would be useful. My limited understanding is that mortgage backed securities are not directly commensurate with real estate values anyway. They were a means of selling on wholesale debt in order to re-finance more selling of debt. Insofar as the two may appear inextricably linked, aren’t MBSs, CDO’s etc exposed as much to the whims of the securities market, as the real estate market?

BTW, I loved the metaphor of a little old lady threading her needle. I hope it’s not a camel she’s using.

[Diego Mamani]

GD: Thanks for the link. This is the kind of smart discussion (or materials) we should be having here.

[Diego Mamani]

GD: Thanks for the link. This is the kind of smart discussion (or materials) we should be having here.

[Diego Mamani]

GD: Thanks for the link. This is the kind of smart discussion (or materials) we should be having here.

[Diego Mamani]

GD: Thanks for the link. This is the kind of smart discussion (or materials) we should be having here.

[Author]

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