[faterikcartman]

Sorry I can’t help — but the response begs the question: have you also looked at the interior of the other homes you’re supposedly using as a reference? I’m guessing no — so what’s the point?

Will they reveal the comparables they used beyond the broad generalities they listed or are you left at their mercy with no clear cut idea how they made their valuation?

I’ll be watching this with earnest as others with more expertise chime in.

[faterikcartman]

Sorry I can’t help — but the response begs the question: have you also looked at the interior of the other homes you’re supposedly using as a reference? I’m guessing no — so what’s the point?

Will they reveal the comparables they used beyond the broad generalities they listed or are you left at their mercy with no clear cut idea how they made their valuation?

I’ll be watching this with earnest as others with more expertise chime in.

[faterikcartman]

Sorry I can’t help — but the response begs the question: have you also looked at the interior of the other homes you’re supposedly using as a reference? I’m guessing no — so what’s the point?

Will they reveal the comparables they used beyond the broad generalities they listed or are you left at their mercy with no clear cut idea how they made their valuation?

I’ll be watching this with earnest as others with more expertise chime in.

[faterikcartman]

Sorry I can’t help — but the response begs the question: have you also looked at the interior of the other homes you’re supposedly using as a reference? I’m guessing no — so what’s the point?

Will they reveal the comparables they used beyond the broad generalities they listed or are you left at their mercy with no clear cut idea how they made their valuation?

I’ll be watching this with earnest as others with more expertise chime in.

[faterikcartman]

Sorry I can’t help — but the response begs the question: have you also looked at the interior of the other homes you’re supposedly using as a reference? I’m guessing no — so what’s the point?

Will they reveal the comparables they used beyond the broad generalities they listed or are you left at their mercy with no clear cut idea how they made their valuation?

I’ll be watching this with earnest as others with more expertise chime in.

[faterikcartman]

If you let them in, good luck getting them out — or out with your house in the same condition.

x2 on asking for the denial letter. For all you know they had a loan and then asked for lower rates more in line with what is currently available at the lowest level and they just backed out in hopes they’ll get lower rates elsewhere.

I’m no expert on this, but I would get it back on the market and let them know you hope they’re the ones who are able to close on it.

[faterikcartman]

If you let them in, good luck getting them out — or out with your house in the same condition.

x2 on asking for the denial letter. For all you know they had a loan and then asked for lower rates more in line with what is currently available at the lowest level and they just backed out in hopes they’ll get lower rates elsewhere.

I’m no expert on this, but I would get it back on the market and let them know you hope they’re the ones who are able to close on it.

[faterikcartman]

If you let them in, good luck getting them out — or out with your house in the same condition.

x2 on asking for the denial letter. For all you know they had a loan and then asked for lower rates more in line with what is currently available at the lowest level and they just backed out in hopes they’ll get lower rates elsewhere.

I’m no expert on this, but I would get it back on the market and let them know you hope they’re the ones who are able to close on it.

[faterikcartman]

If you let them in, good luck getting them out — or out with your house in the same condition.

x2 on asking for the denial letter. For all you know they had a loan and then asked for lower rates more in line with what is currently available at the lowest level and they just backed out in hopes they’ll get lower rates elsewhere.

I’m no expert on this, but I would get it back on the market and let them know you hope they’re the ones who are able to close on it.

[faterikcartman]

If you let them in, good luck getting them out — or out with your house in the same condition.

x2 on asking for the denial letter. For all you know they had a loan and then asked for lower rates more in line with what is currently available at the lowest level and they just backed out in hopes they’ll get lower rates elsewhere.

I’m no expert on this, but I would get it back on the market and let them know you hope they’re the ones who are able to close on it.

[faterikcartman]

[quote=davelj][quote=deadzone]Why would any big time manager announce their strategy to the world? Not gonna happen. If you’d read the book about Paulson (Greatest Trade Ever) you’d know that he was very secretive about all of his credit default swap dealings. If too many other people were in on his side of the trade it wouldn’t have worked.[/quote]

Let’s be clear about what John Paulson did. He cherry-picked the worst loans he could find and helped Goldman structure them in a way that the resulting MBS would still be classified as “investment grade”. Then Goldman went out and found additional investors to buy the MBS and Paulson provided a sliver of equity to get the deals funded. Then he went out and bet against the MBS that he helped create using the CDS market. In relative terms, he lost 10 cents on his long position and made $1 on the “short” position in the CDS.

Here’s an analogy (albeit imperfect). Let’s say I go out and find a house that I’m highly confident is only worth $200K (let’s say it has myriad defects that only I know about). But I find a group of folks who are willing to buy it for $400K in cash with me as a co-investor. I put up $10K of the $400K. Then let’s assume that there’s a market that allows me to bet on the price of that house and I take a short position that’s several multiples of my $10K long position. The defects are uncovered and the house ultimately sells for $200K and I lose $5K on my long position but I make a multiple of that on my short position.

Basically, Paulson helped Goldman structure mortgage-backed securities DESIGNED to fail, and disguised by the fact that he was a co-investor in the MBS. Then he went out and made leveraged bets against them.

Legal? Apparently. Diabolical? Absolutely. Ethical? I don’t think so.[/quote]

So the takeaway from the speech above is “sell your home! If you own two, sell both. If you own three, sell all three. Call your relatives and get them to sell too!”???

[faterikcartman]

[quote=davelj][quote=deadzone]Why would any big time manager announce their strategy to the world? Not gonna happen. If you’d read the book about Paulson (Greatest Trade Ever) you’d know that he was very secretive about all of his credit default swap dealings. If too many other people were in on his side of the trade it wouldn’t have worked.[/quote]

Let’s be clear about what John Paulson did. He cherry-picked the worst loans he could find and helped Goldman structure them in a way that the resulting MBS would still be classified as “investment grade”. Then Goldman went out and found additional investors to buy the MBS and Paulson provided a sliver of equity to get the deals funded. Then he went out and bet against the MBS that he helped create using the CDS market. In relative terms, he lost 10 cents on his long position and made $1 on the “short” position in the CDS.

Here’s an analogy (albeit imperfect). Let’s say I go out and find a house that I’m highly confident is only worth $200K (let’s say it has myriad defects that only I know about). But I find a group of folks who are willing to buy it for $400K in cash with me as a co-investor. I put up $10K of the $400K. Then let’s assume that there’s a market that allows me to bet on the price of that house and I take a short position that’s several multiples of my $10K long position. The defects are uncovered and the house ultimately sells for $200K and I lose $5K on my long position but I make a multiple of that on my short position.

Basically, Paulson helped Goldman structure mortgage-backed securities DESIGNED to fail, and disguised by the fact that he was a co-investor in the MBS. Then he went out and made leveraged bets against them.

Legal? Apparently. Diabolical? Absolutely. Ethical? I don’t think so.[/quote]

So the takeaway from the speech above is “sell your home! If you own two, sell both. If you own three, sell all three. Call your relatives and get them to sell too!”???

[faterikcartman]

[quote=davelj][quote=deadzone]Why would any big time manager announce their strategy to the world? Not gonna happen. If you’d read the book about Paulson (Greatest Trade Ever) you’d know that he was very secretive about all of his credit default swap dealings. If too many other people were in on his side of the trade it wouldn’t have worked.[/quote]

Let’s be clear about what John Paulson did. He cherry-picked the worst loans he could find and helped Goldman structure them in a way that the resulting MBS would still be classified as “investment grade”. Then Goldman went out and found additional investors to buy the MBS and Paulson provided a sliver of equity to get the deals funded. Then he went out and bet against the MBS that he helped create using the CDS market. In relative terms, he lost 10 cents on his long position and made $1 on the “short” position in the CDS.

Here’s an analogy (albeit imperfect). Let’s say I go out and find a house that I’m highly confident is only worth $200K (let’s say it has myriad defects that only I know about). But I find a group of folks who are willing to buy it for $400K in cash with me as a co-investor. I put up $10K of the $400K. Then let’s assume that there’s a market that allows me to bet on the price of that house and I take a short position that’s several multiples of my $10K long position. The defects are uncovered and the house ultimately sells for $200K and I lose $5K on my long position but I make a multiple of that on my short position.

Basically, Paulson helped Goldman structure mortgage-backed securities DESIGNED to fail, and disguised by the fact that he was a co-investor in the MBS. Then he went out and made leveraged bets against them.

Legal? Apparently. Diabolical? Absolutely. Ethical? I don’t think so.[/quote]

So the takeaway from the speech above is “sell your home! If you own two, sell both. If you own three, sell all three. Call your relatives and get them to sell too!”???

[faterikcartman]

[quote=davelj][quote=deadzone]Why would any big time manager announce their strategy to the world? Not gonna happen. If you’d read the book about Paulson (Greatest Trade Ever) you’d know that he was very secretive about all of his credit default swap dealings. If too many other people were in on his side of the trade it wouldn’t have worked.[/quote]

Let’s be clear about what John Paulson did. He cherry-picked the worst loans he could find and helped Goldman structure them in a way that the resulting MBS would still be classified as “investment grade”. Then Goldman went out and found additional investors to buy the MBS and Paulson provided a sliver of equity to get the deals funded. Then he went out and bet against the MBS that he helped create using the CDS market. In relative terms, he lost 10 cents on his long position and made $1 on the “short” position in the CDS.

Here’s an analogy (albeit imperfect). Let’s say I go out and find a house that I’m highly confident is only worth $200K (let’s say it has myriad defects that only I know about). But I find a group of folks who are willing to buy it for $400K in cash with me as a co-investor. I put up $10K of the $400K. Then let’s assume that there’s a market that allows me to bet on the price of that house and I take a short position that’s several multiples of my $10K long position. The defects are uncovered and the house ultimately sells for $200K and I lose $5K on my long position but I make a multiple of that on my short position.

Basically, Paulson helped Goldman structure mortgage-backed securities DESIGNED to fail, and disguised by the fact that he was a co-investor in the MBS. Then he went out and made leveraged bets against them.

Legal? Apparently. Diabolical? Absolutely. Ethical? I don’t think so.[/quote]

So the takeaway from the speech above is “sell your home! If you own two, sell both. If you own three, sell all three. Call your relatives and get them to sell too!”???

[faterikcartman]

[quote=davelj][quote=deadzone]Why would any big time manager announce their strategy to the world? Not gonna happen. If you’d read the book about Paulson (Greatest Trade Ever) you’d know that he was very secretive about all of his credit default swap dealings. If too many other people were in on his side of the trade it wouldn’t have worked.[/quote]

Let’s be clear about what John Paulson did. He cherry-picked the worst loans he could find and helped Goldman structure them in a way that the resulting MBS would still be classified as “investment grade”. Then Goldman went out and found additional investors to buy the MBS and Paulson provided a sliver of equity to get the deals funded. Then he went out and bet against the MBS that he helped create using the CDS market. In relative terms, he lost 10 cents on his long position and made $1 on the “short” position in the CDS.

Here’s an analogy (albeit imperfect). Let’s say I go out and find a house that I’m highly confident is only worth $200K (let’s say it has myriad defects that only I know about). But I find a group of folks who are willing to buy it for $400K in cash with me as a co-investor. I put up $10K of the $400K. Then let’s assume that there’s a market that allows me to bet on the price of that house and I take a short position that’s several multiples of my $10K long position. The defects are uncovered and the house ultimately sells for $200K and I lose $5K on my long position but I make a multiple of that on my short position.

Basically, Paulson helped Goldman structure mortgage-backed securities DESIGNED to fail, and disguised by the fact that he was a co-investor in the MBS. Then he went out and made leveraged bets against them.

Legal? Apparently. Diabolical? Absolutely. Ethical? I don’t think so.[/quote]

So the takeaway from the speech above is “sell your home! If you own two, sell both. If you own three, sell all three. Call your relatives and get them to sell too!”???

[Author]

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