It begins !!

As we mentioned on monday.

We note today that the stink of death is leaking from the foreclosuregate pit. It doesn’t seem to have hit the markets yet, but we think it is only a matter of time

Well it looks like that time started last night. As we said in regards to PIMCOs actions of selling off T-Bonds and pruchasing MBS.

So if you thought:

  1. The MBS market was about to go to the cr*pper.
  2. When it did, the government was once again going to backstop the banks while they were paying back the owners of MBS packages that they could not find documentation for;
  3. You had the legal firepower the make sure you got every last penny.
    what would you do ?

And there they are.

Pacific Investment Management Co., BlackRock Inc. and the Federal Reserve Bank of New York are seeking to force Bank of America Corp. to repurchase soured mortgages packaged into $47 billion of bonds by its Countrywide Financial Corp. unit, people familiar with the matter said.

Looks like the big boys are going to war. Just trying to work out how the vampire squid is going to come out on top ? We are sure they have a plan.


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