Black Friday? (Comments)

not enough liquidity to value them….the mtg co’s…

Whitney - Aug 5, 2007

not enough liquidity to value them….the mtg co’s are so far upside down on their lending that it’s not even worth the analysts’ time?

well, the hedge funds were invested in the subprime mortgages and mortgage brokers themselves. I used to be invested in Harbor Fund’s Harbor Bond fund and it had a great run investing in mortgages, but it scared me so I got out before 2005.

Maybe Chuck can jump on here and explain it for us.

As a student of history, alot of these events are “butterfly effect” scenarios: Something triggers something else in a chaotic chain of events. Alot of the stock market is set-up to prevent that–if there’s a panic, the market shuts down to stop the automatically programmed stop-loss orders from the brokerages.

Still, it can get fun. We’ll see.

Well, the Fed jumped in with $20 Billion and bailed-out the scared investors. We’ll see if that holds…I think the fundamentals of this market are just whacked.