``Why in the world would old-vintage MBS holders hang on when they can buy new-vintage, explicitly guaranteed stuff soon enough? The Treasury will only be buying the new MBS they said. They are not planning on going in here and buying existing MBS. If you were China, why take the chance of holding past Paulson’s term or past a nice gap up tomorrow morning? If spreads do narrow considerably they can just put the money in Ginnie’s and have no doubt about a guaranty. It makes no sense to hold and pray after barely making out of this. ''

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