Posted on 04/03/2011 12:17:36 PM PDT by NormsRevenge
It will be a two word report:
Bush’s fault.
Absolutely. And when I hear people whining for the huge financial firms on the other side of these synthetic CDO trades, I have to laugh.
Is it time to get back into the housing market?
The estate agents are waving foreclosure lists in my face
and offering deals with 3.5% down.
Do you understand that the folks taking the other side of the Goldman trades were large institutions and sophisticated investors. One side won the bet, the other side lost. You, like the author of the article. are trying to create the misimpression that Goldman clients are small unsophisticated investors. They are not. Goldman clients are only large personal, corporate and institutional investors.This happens all the time on Wall Street and there is absolutely nothing illegal or fraudulent about it.The real problem is the government allowing the amount of leverage that the bets were made with, not the bets themselves. Overleveraging is what created the institutional crisis, not trading.
IMHO the worst is yet to come...a lot of the banks are holding back on their REO’s (real estate owned) so as not to glut the mkt. I woulnd’t invest in any foreclosures unless you are sure you can get a clear title.
I notice you never got an answer. Lol.
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