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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth
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To: Kevin Rose who wrote (139373)9/29/2008 10:36:48 PM
From: geode00  Read Replies (2) of 173976
 
Right, if the underlying mortgages are the biggest part of the problem.

That's what doesn't make sense to me. The mortgage situation in the US is only so big. We have already taken over half the guarantees with Fannie and Freddie. There is only so much more to go.

The problem, from what I can tell, is the securitization of those mortgages, the 'investment' or speculation in them and in their default insurance 'policies' all of which appear to be hiding under a rock. If the people who borrowed tons of money to speculate in these things don't know how much they are worth, maybe they really aren't worth anything.

If these credit default swaps went through 15-20 iterations of buying and selling with lots of borrowing in between, what is the actual size of the problem? If that's much larger than the $700 billion or, perhaps, much larger than we are then fixing the actual mortgage problem isn't sufficient. It's barely a down payment.

If the mortgage problem had been fixed before, maybe the day of reckoning would have slid into the next administration and people would be enjoying a nice fall day.

:)

I don't know. I wish Paulson and Bernanke would get on the dang TV and go through this with us. Then again, maybe we would be astonished to realize that they don't know what is going on either.
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