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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: UncleBigs who wrote (72281)	10/18/2006 4:09:33 PM
From: Perspective	Respond to of 110194

Yeah, I keep asking myself who's dumber (or is it who's smarter?) - the people who have been taking out these ridiculous loans that can't possibly be repaid, or the people lending them the money. Check that - actually, the answer is neither. The borrowers and the "lenders" are both smart. They are enriching themselves by borrowing and lending someone else's money. The fools are the ones dumb enough to buy the securitized products they are bundled into. They're the ones that don't get repaid, and end up holding the bag - or in this case the keys. Last I heard, that meant mostly hedge funds, right? They're buying the risky tranches of this toxic trash, and with leverage to boot. Wow, I'm impressed at how much stronger our financial system is compared to that of our fathers. <s> Damn, our financial wizards is so smart... BC