Full story here. Set your faces to “stun”…
“…Potential losses in housing values from 2008 foreclosures in all 50 states — if values decline to 2000 levels– were less than one-third of the $350 billion provided to banks and insurance companies to cope with losses in mortgage-backed securities, Lucy and Herlitz estimated.
“Damage to the balance sheets of large banks and AIG occurred not mainly from losses on foreclosed residential mortgages, but because of borrowing short-range to buy long-range derivatives and from selling credit default swaps insuring derivatives backed by mortgage payments,” Lucy and Herlitz said.
“These financial manipulations had high-speed forward gears, but when the housing bubble burst, the banks and AIG discovered they had neglected to create a reverse gear with which they could separate foreclosed properties from some forms of mortgage-backed securities.”
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Well here’s a nice dose of truth. Honestly, Tony Soprano couldn’t have dreamed up a racket like this. The spotlights are on the crooks. Are they going to admit it and walk away or stuff their pockets faster?
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Tags: AIG, Bailout, subprime
This entry was posted
on Thursday, February 26th, 2009 at 12:05 pm and is filed under Commentary, Futures Market, Futures Market Commentary, Futures Trading, KOSPI, Nitetrading, Podcast, Podcast, Subprime Woes, Trading Online.
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Surprise university study on foreclosures
Full story here. Set your faces to “stun”…
“…Potential losses in housing values from 2008 foreclosures in all 50 states — if values decline to 2000 levels– were less than one-third of the $350 billion provided to banks and insurance companies to cope with losses in mortgage-backed securities, Lucy and Herlitz estimated.
“Damage to the balance sheets of large banks and AIG occurred not mainly from losses on foreclosed residential mortgages, but because of borrowing short-range to buy long-range derivatives and from selling credit default swaps insuring derivatives backed by mortgage payments,” Lucy and Herlitz said.
“These financial manipulations had high-speed forward gears, but when the housing bubble burst, the banks and AIG discovered they had neglected to create a reverse gear with which they could separate foreclosed properties from some forms of mortgage-backed securities.”
Mad as hell and can’t take it anymore? Join Shadowtraders and learn to trade the Futures Market.
Well here’s a nice dose of truth. Honestly, Tony Soprano couldn’t have dreamed up a racket like this. The spotlights are on the crooks. Are they going to admit it and walk away or stuff their pockets faster?
Tags: AIG, Bailout, subprime
This entry was posted on Thursday, February 26th, 2009 at 12:05 pm and is filed under Commentary, Futures Market, Futures Market Commentary, Futures Trading, KOSPI, Nitetrading, Podcast, Podcast, Subprime Woes, Trading Online. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.