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alstry (35.36)

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March 13, 2008 – Comments (3)

The following is a Bloomberg Headline about S&P calling a bottom for SubPrime Writedowns:

U.S. Stocks Gain After S&P Predicts End to Subprime Writedowns
By Eric Martin

March 13 (Bloomberg) -- U.S. stocks rose for the second day this week after Standard & Poor's predicted an end to banks' subprime mortgage writedowns.........

 

Please take a look at the chart of a tranche of ABX Subprime Loans:

http://www.markit.com/information/products/category/indices/abx.html

 

The value of the tranche is DOWN over 90% from its peak.  DOWN OVER 90%.  It's tough to write much more off when you are down  over 90%.  No kidding the bottom is near on SubPrime.  What about Alt A and Prime.....that party is just beginning and much larger

Sorta like a pilot flying SubPrime Airlines telling his passengers that the airplane's free fall is about to end as the plane nears the ground without wings or a tail.......AND ALL THE PASSENGERS CHEER!!!!!!!!!!!!!!!!!!

3 Comments – Post Your Own

#1) On March 13, 2008 at 5:21 PM, ATWDLimited (< 20) wrote:

LOL, that is hilarious, Thats why you should jump on board with gold and silver. Check out my blog about silver today and my previous analysis on gold.

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#2) On March 13, 2008 at 7:22 PM, jesusfreakinco (28.81) wrote:

Alstry,

What do you expect?  The Fed and much in the media is trying to keep expectations as high as possible to keep the whole flippin' economy from spiraling downward...

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#3) On March 13, 2008 at 9:34 PM, alstry (35.36) wrote:

Another Headline:

Japanese Stocks Rally After S&P Predicts End of Subprime Woes

By Masaki Kondo

March 14 (Bloomberg) -- Japanese stocks rallied after Standard & Poor's said the end of subprime writedowns was drawing near, boosting confidence global financial companies will stop incurring losses on U.S. mortgage investments.

The Japanese are really excited because after the world lost hundreds of billions on subprime, they are ready to get pumped with trillions of additional losses of Alt A, Stated Income, Neg Am, and Prime loans.

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