Why You Should Hate the Treasury Bailout Proposal

btw, in Mauldin's example, I believe he makes a mistake by saying $100 million, when he means $100 billion. I think, not sure. It's a little confusing.

Also, another problem with these tranches, is that they aren't broken out by geography. If, for example, you wanted to eliminate California and Florida real estate within your RMBS purchase, to the best of my knowledge, there is no way to do that. So the worst gets assumed when pricing these securites.