Credit markets are still setting new lows

[sinner]

Hi guys,

I draw your attention to the following link

http://www.markit.com/abx.jsp

which shows the price index for Asset Backed Securities. If you view the link you can see lots and lots of AAA and AA grade debts are setting new lows each day, especially yesterday. Not to mention, there is no longer any BB graded debt, it has all VANISHED>

This is going on despite the rally. This was drawn attention to a contrarian friend of mine, when we were discussing the current gold price drop. His words "there is lots of paper gold floating around right now and lots of it is being liquidated to pay off debt".

Some of these tranches are marked as 2 or 3 cents on the dollar when a year ago they were marked at over 100!

Worth a look.

 

[projack]

Are you surprised?
This video shows the root of the problem.
REALLY WORTH TO WATCH.!!!!

http://www.pbs.org/moyers/journal/04032009/watch.html

 

[CanOz]

I thought this did not matter anymore as the institutions we free to value them as they feel fair?

CanOz

 

[sinner]

Heaps of stuff has simply been moved off balance sheet to give the public the impression that banks are still solvent.

This is the stuff they are allows to value as they please, so it can go back on the balance sheet!

This is the AAA, AA and BBB stuff that everyone is watching closely, it can't simply vanish!