I think this example was written on a Real Estate blog on what
is going on in the real world. The banks are doing
what some traders do with a broken stock. For
example... you buy a stock at 100 a share and now it is worth 40.00
bucks.. Do you sell now or wait to it recovers?
The banks are sort of taking what they can get in a sense by
"selling covered calls" until the market recovers.
As long as they have an income stream..they don't seem to
care because it is still better then writing these deals off
completely... I guess
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
Short Sales
Posted by biscuit on 16th of Jan 2012 at 08:09 pm
TRUE BUT
Posted by zach06 on 16th of Jan 2012 at 08:38 pm
I think this example was written on a Real Estate blog on what is going on in the real world. The banks are doing what some traders do with a broken stock. For example... you buy a stock at 100 a share and now it is worth 40.00 bucks.. Do you sell now or wait to it recovers? The banks are sort of taking what they can get in a sense by "selling covered calls" until the market recovers. As long as they have an income stream..they don't seem to care because it is still better then writing these deals off completely... I guess