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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (423652)	10/8/2008 9:12:23 AM
From: Road Walker	Read Replies (1) \| Respond to of 1576619

Our GDP is 14 trillion a year, and there are 62 trillion of credit default swaps out there, no one knows exactly who's holding them or what they "secure", but EVERYONE knows there isn't any money behind them now. I just don't see anything that's going to remove that uncertainty, and until it's gone, the market has no bottom. The CDS are certainly phony unfunded insurance but what's really the problem is nobody knows how good the mortgages are or will be. As more homes get foreclosed it puts pressure on the prices of the housing market which leads to more foreclosures in a cycle... that makes more and more mortgages higher than the value of the underlying asset. So how do you prop up home prices which is at the heart of the problem? Hell I don't think you can, especially with job losses and a almost certain deep recession looming. It's amazing they let the investment banks pull off this shit... selling buckets of bad mortgages at AAA and then offering "insurance" (that they couldn't call insurance because it would have to be backed up with assets) in the form of credit default swaps with no way to make them work. "Listen Bent, can I borrow $1Million? I don't have a dime to by name but if you lend me $1Million I'll sell you a credit default swap for $10k that will guarantee that I will pay you back. Such a deal I have for you....". And this from the "masters of the universe".