In your mind of mind, don't you realize the only person knowing the size of your paycheck is the only one who could determine who could afford to pay what? That is in addition to technical issues, such as actually holding the loans for say, 30 years, and not beholden to investors for a quick flip profits. And that person is who? That's what I thought.
I was a grasshopper who asked if the cost of originating and portfolioing that loan was $108, how come the borrowers only pay us something worth $101-102? The answer is never that complicated, as one learned later in life.
6 comments:
In retrospect, it was nice of the Madoff guy not to get into housing business as a front and instead keep his work as a pure-play Ponzi. All those banks also played similar Ponzi as Madoff with similar outcomes, but in addition created trouble for many homeowners that they could have avoided. In essence, the games were similar -- pension funds had extra money and bankers/money managers had need for money. They worked as matter-antimatter pairs :)
What happens if CDS' are "controlled" or nullified by Obongo after GS and SocGen get their payday?
http://www.minyanville.com/articles/aig-market-CDS-crisis-tarp/index/a/21346
GM and SocGen can then trade exclusively between each other. You know why.
So do you think the bank audits will just be a bullshit confidence game or do you think they will have teeth?
It will be a cluster. The govt people will walk in the marble halls thinking they can report how many dead bodies actually inside the vault and then they will fight with bank managements and finally come up with an "inconclusive" report, which doesn't matter because the financial market will continue to be shut as the drama continues.
That sound about right. When someone asks for the books on a "compicated" issue they have missing stuff or circular arrows?
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