Mortgage and Property Market Derivatives On The Way

(From Forbes.com)
In 2007, John Paulson became the toast of Wall Street when he bet against subprime mortgages and came away with personal profits between $3 and $4 billion. To do it, Paulson had to work around the fact that at the time you couldn’t directly short real estate.
The $6.5 trillion U.S. real estate market is [...]

We Are ALL Subprime Now…

First the Bloomberg………
 
 

“The movement in the forward Libor-OIS spreads is telling you that the market is concerned that things can get even worse before they get better,” said Carl Lantz, an interest-rate strategist in New York at Credit Suisse, one of the 20 primary dealers of U.S. government securities that trade with the Federal Reserve. [...]