This is entertaining and offers some truths.

Let's take a look at one more thing.
Please listen to at least the last 15 minutes of the Saxon Capital, Inc. Earnings Conference Call (Q2 2005).

Given that some of you are too simply time pressed to do that, following is a brief transcription of the highlights. Starting about 43:10 minutes in Saxon states.....

- Too much risk taking will lead to a "credit event"
- Much of the volume of competitors is refinancing customers from one product to another to another to another.
- If you are going to be competitive in the business, you HAVE to have a product basket that the customer is demanding and the market is willing to provide
- Offering these products will allow us back into these markets

45:25

- "At the point in time WHEN the credit event comes, AND IT WILL we will be very well placed to take advantage of what happens next"
- "I am concerned about the level of capital" of our competitors "to service the bonds as those portfolios age"
- "Should real estate on the west coast flatten out I would be worried about a credit event"
- There are people that will buy a 100% Loan to Value (LTV). We do not have that product we do not believe in it. We want the stated income borrower to actually have some skin in the game"
- We can now offer those products but "We have no intentions of putting those loans in our portfolio... We are going to pass them thru to other investors "
- Question: and you think that is a good strategy thinking this is The Perfect Storm you are describing?
- Answer: "As long as the market is willing to provide that credit... they attempt to deliver the customer as much cash as possible with the least amount of investigation or effort...That's what drives our customer... In order to get the customers we want we need to be able to offer those products"
- Question: "Since I have known you, you have been bearish on the industry ... now you are saying I want to be more like people offering products that are unsustainable. I am struggling with that"
- Answer: "The only difference is that I do not intend to put those in my portfolio... and the day that I can't sell these (to someone else) is the day that I stop offering them".