Mortgage backed securities market had flaws. REALLY?

This story from the WSJ is perfectly timed for 427, just as we begin talking about the credit and the financial crisis. You know, the one the government just solved. Or did they?

A related note is this presentation by hedge fund manager David Einhorn at the Value Investing Congress I mentioned yesterday. It is about a Florida real estate company with serious asset write-down problems. Before the presentation, it was trading around $25, now it is at $20. Einhorn claims it is worth about $10. FYI-1 this was the guy who was short Lehman all the way down. FYI-2, the Fairholme fund, another hot-shot hedge fund is apparently very long St. Joe.  FYI-3 the presentation is 139 pages long. See what homework means when you manage serious money!

Let us see what sort of backbone this market has. Google selling off steadily (preview of Apple on Monday?) but the rest of it is holding up well.