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mortgage cramdowns and its effects
bubblesmoney
Posts: 2,156 Forumite
looks like mortgage cram downs are set to happen in the usa now. sure the usa judges will be more harsher on the banks in the present climate and will cram down mortgage principles, peg down interest and prolong terms of the mortgage. but this will help only the people who over stretched themselves or made unsound investments while the prudent pay the price, so will the savers and investors.
this will set off another wave of instability among the banks and financial institutions as these cram downs will most likely affect even senior tranches of CDOs as per some analysts. that is sure to seize up the credit market more now as even AAA rated investments will just be as risky to cramdowwns now at the discretion of usa judges. although not sure to what extent the senior tranches woul be affected.
after effects of cram downs from bloomberg
this will set off another wave of instability among the banks and financial institutions as these cram downs will most likely affect even senior tranches of CDOs as per some analysts. that is sure to seize up the credit market more now as even AAA rated investments will just be as risky to cramdowwns now at the discretion of usa judges. although not sure to what extent the senior tranches woul be affected.
after effects of cram downs from bloomberg
bubblesmoney :hello:
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