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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth
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To: Kevin Rose who wrote (139294)9/29/2008 7:14:05 PM
From: Lizzie Tudor1 Recommendation  Read Replies (4) of 173976
 
Silicon valley companies own a ton of these bonds and trusts- they are all rated AAA. Then they thought they were doubly and triply safe by buying credit default swaps to hedge. Billions of dollars at GOOG and others with this arrangement.

Now, the swaps are meaningless and worthless, apparently there was never any regulation to require reserves to use these things as insurance anyway (would have been nice to know that), and the trusts and bonds are trading at maybe .20 on the dollar IF YOU CAN GET IT.

I know of one trust with monterey county properties, worst case those mortgages are worth .60 on the dollar. thats worst case, if most of the houses are in Salinas which they are not. But there is no market even at .60 which would be a firesale. There is no market even at .20 if you want to sell in size. These are the office of the CFO of these companies. I think a serious recession is coming, the voters think this is localized to Wall street banks- WRONG.

Bush is such an incredible failure in every way. Obama has all but won now, he needs to bone up on the issues and hit the ground running the minute he takes office, we will probably be in a recession then.
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