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PrimeX sounds like a protein supplement or a Viagra imitation. I can see a Ron Jeremy commercial for PrimeX now..
any way you slice it...somebody's getting fucked.
Yeah its the people who will be at Occupy Wall Street 2012 and beyond
At least it wasn't any of my puts.
Um, that would be Raj.
not sure i understand real world implications of this
30 year mortgage rates up...
how strongly does this offset bens purchases of mortgage backed bonds?
It means Jumbo Prime mortgages are beginning to see defaults.
Just like subprime...
it may go down again. Power4Home
Search the more recent threads about Primex and scan the comments. Some great explanations were given.
FT Alphaville did a good overview of PrimeX the other day.
Thread FYI: Gary Kaminski on CNBC just said PrimeX is an $11 billion market. It's a small market.
Just the other day I found $2B in my couch cushions.
Now that made me laugh.
I was going to print 20 billion last weekend but I felt bad for the greeks with their ink shortage.
HelluvaEngineer - Your $2b find intrigues me. I'm a venture capitalist and former upholsterer. If you can present a decent business model, I'm primed to invest $4B.
Presuming that number is true, that's likely the unlevered "underlying". It's a bit like saying "Well, the market cap on SPY is only $87.5 billion". Appears small, yet 10-20% swings in either direction can blow up multi-billion dollar firms in a hurry.
Also, PrimeX holdings are much more concentrated.
Subprime blowup of 2008. Now the credit worthyness of so called prime borrowers (those with supposed better credit) about to blowup in the coming weeks or months. In other words, all standards of credit worthyness is pure BS and all will be taken down.
here comes the obligatory 11:30am US dollar shanking to save the markets.
I was on coupons ( sunday ) open.
OK, I give up. What the f is Prime X? The autobot leader's porn stash?
Just think 'prime real estate, commercial, jumbo loans,' etc.
Indeed. Ol' Optimus enjoys nothing more than to read the new copy of PrimeX, lubricate his lug nuts then "transform" and "roll out". There is an appalling shortage of transformable women...
I hear the Decpticons have a "Don't ask don't tell" policy.
Arcee was kinda hot. I'da tapped it.
Nevermind. I just found a Primex primer. Yeah, disturbing trend. Does this mean that the time to exchange gold for real estate is approaching more rapidly than Gonzalo Lira predicted?
Yea sure trade gold for real estate, because rising rates are sure to add value there. ?
"Approaching more rapidly" does not mean "here now." The end result of this is likely to be a collapse of prime real estate values. Assuming the PMs achieve the stratospheric valuations in dollar terms that they are predicted to achieve, there will come a time when the Au - Real Estate swap makes sense. Maybe that time is coming sooner than expected.
that the time to exchange gold for real estate is approaching more rapidly than Gonzalo Lira predicted?
Under the current regimes, and power players,fiscal/global conditions, I can never see a time to exchange Gold for RE.
One reason,really two.
Eminent Domain, and Taxes.
Either one can SCREW you into the ground on RE like a Chance keep stake anchor.
What do you then use for survival?
The Markit PrimeX is a synthetic CDS index referencing a basket of prime mortgage-backed securities. The intent of the index is to create a liquid, tradeable tool allowing investors to take positions on prime mortgage-backed securities via CDS contracts. Its liquidity and standardization will allow investors to accurately gauge market sentiment around the asset-class, and to take short or long positions accordingly.
Thanks. I'm not familiar with this and its not on the ZH Glossary yet.
Think back a few short years to Bernank's statements about "sub-prime" mortgage problems being contained.
And sell side people saying, "sub-prime is a mess, but prime mortgages are doing fine"
This instrument, PrimeX, was set up to follow prime mortgages.
As you can see, they are breaking containment.
That's my simple understanding of it anyway.
PrimeX is going under? But that means all the McMansions are upside down!
Quick, we need to bail out all the rich people! (Again)
It's ok. Trump towers was financed with junk bonds and it's gone bankrupt 3 times. If you say financial pariah around a banker they think you said mariah carry.
Of course all the mcmansions are financed with junk bonds as well. I think they call it a mortage note. LOL
so is it that the lower Prime-x goes the higher bank earnings will be ?
Wells was bragging last quarter that it's portfolio was doing relatively well due to high composition of prime mortgages.
Expect everything to get more bizarre and totaly untradeable from here on out as we approach kickoff to WW3 with Iran. The retail trader has been barred from the markets, but theyll still be happy to steal your money if youre brave enough to actually place an order with an HFT robot.
bunker buster bombs were recently shipped to israel, war within two weeks according to inside sources!
If true are there any publicly traded blood bank stawks I can buy ?
First three links when I googled it. How about you getting off your lazy ass.
Is this bullish for BAC, GS? That's all that really matters.
Hard to tell what's really going on, considering the bid/ask spread is wide enough to let several trucks through
Meanwhile, the Riverboaters continue to pile into the absolute worst crap imaginable in a vain attempt to "make their year".
Chinese Junkers like JKS up 70% in 5 days.
What a freaking casino.
You know if you posted this stuff BEFORE they go up and not after, people around here might appretiate you more.
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