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Bugs
16 years ago

Kinda looks like a cliff.

Kinda looks like a cliff.

superfly19
16 years ago

Are these indexes something
Are these indexes something that can be shorted?

DCRogers
16 years ago

Want to bet it will get
Want to bet it will get worse? Here’s support, and info on how:

http://www.bloomberg.com/apps/news?pid=20601087&sid=avTR8S7Yr5Kw&refer=home

“The BBB- rated portions of ABX contracts are “going to zero,” said Peter Schiff, president of Euro Pacific Capital, a securities brokerage in Darien, Connecticut. “It’s a self- perpetuating spiral, where as subprime companies tighten lending standards they create even more defaults” by removing demand from the housing market and hurting home prices, he said.

Schiff said he has steered his clients to invest in the U.S. Residential Real Estate Hedge V fund, which has $17 million in bearish bets through ABX contracts. The fund has made about 50 percent this year, said Andrew Lahde, head of Ladhe Capital Management in Santa Monica, California and manager of the fund.”

CA renter
16 years ago

I do believe the bears are
I do believe the bears are about to be exonerated.

Nothing mattered, IMHO, as long as lenders were handing out $500K loans like cotton candy at the county fair. God be willing, we are about to see the bottom drop out of the housing market — and affordable housing will finally be restored.

The bell has finally tolled.

superfly19
16 years ago
Reply to  CA renter

Does anyone have any ideas
Does anyone have any ideas on a way to short these that is traded on the exchanges? The U.S. Residential Real Estate Hedge fund above seems like a good option, but it isn’t traded on the exchange. You have to contact the funds broker directly.

Duck
16 years ago
Reply to  superfly19

I’d be very careful about
I’d be very careful about betting on the ABX It’s thinly traded, was launched only a year ago and is an index that follows just 20 bonds which is a fraction of the overall market. It will be very volatile and who knows what traders really control the price movements.

Also, that Residential Hedge fund was just created about 2 weeks ago.

no_such_reality
16 years ago
Reply to  CA renter

The bell has finally
The bell has finally tolled.

Yes, but will the economy still be standing the morning after?

JWM in SD
16 years ago

Yes, the grim reaper of
Yes, the grim reaper of subprime boiler rooms, that would be Merrill Lynch, is going to pull their plugs one by one over the next year or so. This is just the beginning…

For all of you permabull clowns, and you know who you are, don’t say you weren’t warned.

Anonymous
Anonymous
8 years ago

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You have made some wonderful points right here. I am happy I came across this informative article.
Love the site though.

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