Short Term Trading Member Forum

[willieintheno]

Tech...Still don't see it...

Not trying to be argumentative, just curious about ABX and it's value.

Below posted Jan 11, 2007:

http://www.rgemonitor.com/blog/roubini/172409

"I just checked the ABX.HE BBB index. It has dropped by about 5-7% since July of 2006. This is a _substantial_ drop! Notably, there was a major plummet of the index starting in Dec 2006 when some of the dealers in risky mortgages started going belly up.

So what does this mean? It means that someone out there is now having to cough up the losses in the bad loans. It could be hedge funds, or maybe overseas lenders. But someone is starting to see some losses happening on their balance sheets, and the problem is going to grow significantly in 2007.”

5-7% drop since July of 2006 to January 2007.

"the problem is going to grow significantly in 2007."

Again, looking and the major indexes from July 2006 to Jan 2007 (date of posted "blog" and the 2007 charts ( as quoted above), I am having trouble finding a correlation between ABX and market performance.

Willie