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NEW -> Contingent Buyer Assistance Program
Funny Hank "The Hammer" Paulson says we want a strong dollar and the <a href="http://www.ft.com/cms/s/0/e7ab931c-7050-11dc-a6d1-0000779fd2ac.html">EU doesn't like a strong Euro</a>. But does it really matter what they want?
 
It's a Patrick link but Barry wrote about as <a href="http://seekingalpha.com/article/48506-nar-on-temporary-housing-problems?source=patrick.net">sarcastic of an article</a> on NAR as I would.
 
Rocker,





If you want to see an interesting history on what happens when you let loose a bunch of academic geniuses on Wall Street, check out the story of <a href="http://en.wikipedia.org/wiki/Long-Term_Capital_Management">Long-Term Capital Management</a>.
 
many quant funds lost a great deal in july and early august. the wsj published a series of letters to investors from various sinking hedge funds, including one from the legendary quantmaster, jim simons of renaissance technology.





what would your mortgage broker, realtor, or homebuilder say if they had to write apology letters to clients that lost money.





DEAR INVESTORS,




<img width="44" vspace="0" hspace="0" height="48" border="0" align="right" alt="[pen]" class="imgrgtins" src="http://online.wsj.com/public/resources/images/it_writing-pen07152005181615.gif" />

"If the rumors are that we've had better weeks, then they are accurate. If the rumors are that we are in some pain over the recent widespread quant stock selection woes, then they are accurate. If the rumors are more severe than that, then they are simply false." <a href="http://online.wsj.com/documents/sorry-aqr.pdf" class="p11">Read full letter</a>.


-- Clifford S. Asness, managing and founding principal, AQR Capital Management

<strong>* * *</strong>

"Regrettably we have not had good luck during these last few days of August. We have been caught in what appears to be a large wave of de-leveraging on the part of quantitative long/short hedge funds." <a href="http://online.wsj.com/documents/sorry-renaissance.pdf" class="p11">Read full letter</a>.


-- Jim Simons, president, Renaissance Technologies

<strong>* * *</strong>

"As you know from the daily net asset value estimates which we make available to you, our performance has been disappointing." <a href="http://online.wsj.com/documents/sorry-tykhe.pdf" class="p11">Read full letter</a>.


-- Tykhe Capital

<strong>* * *</strong>

"Based on our own research and market knowledge, we believe that this increase in volatility is technical rather than fundamental in nature." <a href="http://online.wsj.com/documents/sorry-barclays.pdf" class="p11">Read full letter</a>.


-- Minder Cheng, managing director, Barclays Global Investors

<strong>* * *</strong>

"There was (and is) the possibility that, as great as liquidations had been so far, that it was just the beginning of a spiral of me-too liquidations. The question was, when will it end? The answer is, we don't know." <a href="http://online.wsj.com/documents/sorry-blackmesa.pdf" class="p11">Read full letter</a>.


-- Dave DeMers and Jonathan Spring, Black Mesa Capital

<strong>* * *</strong>

"We have always attempted to do the very best for our investors. A loss of this magnitude in such a short period is as devastating to us as it is to you." <a href="http://online.wsj.com/documents/sorry-sowood.pdf" class="p11">Read full letter</a>.


-- Jeff Larson, Sowood Capital Management

<strong>* * *</strong>

"We have been actively managing our exposures through this challenging environment and will be in contact with you shortly to give you an additional update." <a href="http://online.wsj.com/documents/sorry-highbridge.pdf" class="p11">Read full letter</a>.


-- Highbridge Capital Management

<strong>* * *</strong>
 
<p><em>If you want to see an interesting history on what happens when you let loose a bunch of academic geniuses on Wall Street, check out the story of </em><a href="http://en.wikipedia.org/wiki/Long-Term_Capital_Management"><em>Long-Term Capital Management</em></a><em>.</em> </p>

<p>And if you want to see who they lost it too and how the game is played, read <a href="http://en.wikipedia.org/wiki/Liar%27s_Poker">Liar's Poker</a>.</p>
 
<p>Pending Home Sales down 6.5 % from July, down 21.5% from August 2006</p>

<p>News Article: <a href="http://biz.yahoo.com/ap/071002/pending_home_sales.html?.v=11">biz.yahoo.com/ap/071002/pending_home_sales.html</a></p>

<p>Video Analysis: <a href="http://www.cnbc.com/id/15840232?video=540738429&play=1">www.cnbc.com/id/15840232</a></p>

<p>NAR Spin: <a href="http://www.realtor.org/press_room/news_releases/2007/phs_aug07_mortgage_problems_continue.html">www.realtor.org/press_room/news_releases/2007/phs_aug07_mortgage_problems_continue.html</a></p>

<p>(Surprising little spin from Yun. . .maybe he may not be able to spin the news)</p>
 
<p>NSR,</p>

<p>I hate to assume but I take it you have read LIars Poker. I am about a third of the way through it and think that it is pretty good so far. I ask because I know awgee was curious about it too. I need to catch up on my reading. I am so behind but the foreclosures have been so much fun lately.</p>
 
<p><a href="http://money.aol.com/news/articles/_a/home-sales-forecast-index-hits-new-low/20071002103609990001">Home Sales Forecast Index Hits New Low - AOL Money & Finance</a></p>

<p><em>"August's reading of 85.5 was below analysts' expectations and the lowest ever for the index, which started in January 2001".</em></p>
 
graphrix - <b>You are the one who sent that to me!!!</b> Or maybe not. I received that ad as an email, but I think I got it from the originator. I am unsure and will have to check.<p>


I want to go out of curiousity, but not because I want to invest either my funds or my clients. But, I don't think curiousity will be enough for me to write a check to attend the seminar. Isn't it $500 or something?<p>


You? Aren't you curious to see what flavor of kook-aid they are serving?
 
<p>awgee,</p>

<p>It wasn't me that sent it to you as I just found it. I wish I did have more notice. I would have seriously considered a trip to NYC. I would love to hear what they have to say. $500 is a bit steep especially when most of the info would be over my head. Maybe when they have the next one we will have more advanced notice and some of our trades will go green to justify the cost.</p>
 
Loan Servicers Create New Mortgage Snags

<p><a href="http://money.aol.com/news/articles/_a/loan-servicers-create-new-mortgage-snags/n20071002151009990001">Loan Servicers Create New Mortgage Snags - AOL Money & Finance</a></p>
 
Graphix, it's good. I think I prefer The Millionaire Next Door though, a little more humble. Liar's is all about a bunch of egotist's milking an undefined market for excess profits. Ironic since it was mortgage bonds that provided the essence of modern financial privateering all the way back in the 80s.
 
Deutsche Bank released numbers and they are up in the Euro market. This isn't a recommendation but they sure own a lot of property in the US. Could be a quick shorting opportunity.
 
Countrywide might have about <a href="http://www.housingwire.com/2007/10/03/countrywide-speculation-analyst-predicts-4-billion-in-loan-write-downs/">$4bil in write downs</a> on the bags er I mean loans they are holding.
 
<p>I know that most of us give Helicopter Ben a hard time but <a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=ae21h4HAD6Ag">this article</a> should add some respect since he is seeking advice. </p>

<p>For those who don't know Lewis Ranieri is one of the main players of MBS and if you have read <a href="http://www.amazon.com/Liars-Poker-Rising-Through-Wreckage/dp/0140143459/">Liars Poker</a> you know who he is. </p>
 
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