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

To: Little Joe who wrote (99592)	11/10/2008 4:07:34 PM
From: Crimson Ghost	1 Recommendation Respond to of 110194

To put in a more down to earth manner AMERICAN PEOPLE TO FINANCIAL INDUSTRY PARASITES AND FAT CATS -- DROP DEAD!

To: Little Joe who wrote (99592)	11/10/2008 8:34:35 PM
From: Hawkmoon	2 Recommendations Respond to of 110194

Pretty hard to tell taxpayers that they are on the hook for billions to lying cheating banks and wall street thieves but nothing for you. Well, it depends on the taxpayer/home owner.. If they have no "skin in the game" because they didn't put 20% down, and/or had an interest only ARM, they really don't have much of a leg to stand on. They were buying based purely on the speculation of an appreciating home value. What gets me is that for years mortgage lending was relatively conservative. The banks held the loans, or sold them off to an entity where they were held off book, but still traceable. If you didn't have 20% down, you took out PMI and paid the premiums. But over the past 10 years we just turned the foundation of our economy (real estate) over to a "Vegas" mentality where no one could figure out who owned what, and then compounded the error by insuring them with unregulated Credit Default Swaps with no true legal enforceability and which were vulnerable to manipulation via CDS indices and synthetic shorting via derivatives by people who didn't even own a RMBs or CDO. We're going to have to get back to banks holding the loans they originate, or at least have some serious regulation wherein those loans are traceable and not subject to arbitrary reselling. And maybe the Treasury is starting to understand that, since they just took a huge quantity of CDS liabilities off of AIG's hands, thereby becoming the insurer of last resort for these instruments so that long-term value can be eventually realized, or amortized. Hawk