GLG News by Mortgage Backed Securities Experts

This is not surprising.  GM/GMAC has been dealing with diminishing liquidity going back to the creation of Residential Capital Corporation in 2006.

The analysis in this article is generally on point, but keep in mind this is a synthetic market.

KDB in this case is playing the role of the blind squirrel who finds a nut.  It is wise to invest opportunistically, in ventures that are cheap, WHEN YOU UNDERSTAND THAT YOU ARE NOT KNOWLEDGEBLE IN HOW TO RUN THESE BUSINESSES. 

The question to answer here is whether or not the ECB is a collateral-based lender.

The fact the ECB might accept securities other central banks (or private lenders) might not is not preventing the market for these securities to correct.  Pledging securities to a collateralized lender will not affect the ability to sell these securities when the opportunity presents itself.

Let me be brief.  This is a synthetic market that allows participants to express their sentiments (wager) without participating in the cash market.  Beware reading too much into the levels at which items trade in any synthetic market.

Borrowers are finding it more difficult to obtain credit because lenders have a renewed awareness of the basics of extending credit, not because borrowers are requesting credit more often.

Washington Mutual's decision to exit the Wholesale mortgage market along with the demise of othe wholesale lenders and similar exit of wholesale by yet other lenders will severely affect Mortgage Brokers ability to properly place loans for clients. This of course could be a significant opportunity for...

Fed shows it is reactive rather than proactive. They waited until investors were stampeding to the exits to react in a desperate manner. Markets have lost some of its confidence with Ben Bernanke and the honeymoon is over. Traders do not feel that he is atuned to the markets as the Maestro (Alan Greenspan)....

With the residential lending capital markets virtually shut down, there is little good information that is known.  But there is a lot of sentiment, including fear.  I look to a firm such as the New York Times to allay fear and communicate good information during these times.  Rather,...