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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (21766)	8/30/2007 12:27:31 AM
From: carranza2	Read Replies (2) \| Respond to of 220028

Overcollateralization is a joke when the rating agencies will rate a goat's ass as AAA. The rating agencies have for at least a decade been the handmaidens of the financial wizards who dream up things like derivatives based on Argentinian bonds. Remember those? derivativesstrategy.com And the purpose of these made-as-instructed ratings is to get crap into the hands of pension funds, insurance companies, any entity that must satisfy a regulator who isn't looking too closesly except at the number of As in the rating. Any sentient human being knows that re-sets will be enormous starting in early '08, followed by non-payments, and, finally, by foreclosures 12-18 months later. The debacle, however, will not be 12-18 months from re-setting but now as the more intelligent of the morons holding CDOs and mortgage based derivatives do NOW what they can to save whatever they can. The problems with derivatives based on debt were known as early as 1998. Check this out: derivativesstrategy.com This seems as obvious to me as the nose on my face, but I'm probably wrong. Nonetheless, my actions anticipate this scenario. If I'm wrong, I have acted rationally to protect capital. We have forgotten how to think about risk.