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To: SAJ

Sorry, I was responding to ThinkDifferent's post #41 - I should have included it when I pinged you. Essentially, his question was regarding who would want a long position, as Econ 101 would indicate that the price should drop until it finds an equilibrium point. I attempted an analogy based on your previous post (IIRC, about the turkey future failure).


46 posted on 03/24/2006 1:54:13 PM PST by RebelBanker (If you can't do something smart, do something right.)
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To: RebelBanker
Yep. Fully agree. If there aren't a readily identifiable group of natural longs (as in this case), I foresee nothing but trouble for this mkt.

The only intuitively appealing long is if one is of a mind to spec this mkt, but you can't make bricks w/o straw. The specs will come in only if there's sufficient open interest, which will occur only when the specs come in.

Curious mkt, in some sense, in that both the industry (banking/mortgages) and the consumer would appear to be candidates for the same side of the mkt. Don't know if I can name another mkt quite like that.

47 posted on 03/24/2006 2:28:30 PM PST by SAJ (qu)
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