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Author: wzambon Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1972011  
Subject: Re: Wall Street'ers in jail Date: 10/11/2012 11:10 AM
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Oh come on

Barney Frank pushes home loans to unqualified people

Fannie may issues the loans

Big banks get stuck with them as usual

Big banks bundle them as investment vehicles, as usual

Home mortgages plunge as unqualified buyers default

Value of Bundles drop ... but nobody knows how much since nobody knows actual count of defaults

Banks stuck with unpriceable bundles forced to take the hit, reducing assets on hand

Bank stocks crash

Booosh tarps the mess


You guys are getting closer to the truth, but the narrative still has a teenie weenie flaw....

Big banks were not "stuck with them as usual".

They actively sought them out, and set up the mechanisms to sell even more trash, so they could bundle it.

It wasn't just subprime. It was also Alt-A... and the majority of loans that defaulted WERE NOT LOANS TO POOR BORROWERS... but were rather loans to Biff and Jane Foxworth in places like suburban Phoenix, suburban Las Vegas, suburban Virginia and suburban Miami, Florida.
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