Posted on 07/28/2010 8:23:37 AM PDT by IMissPresidentReagan
Bond Dividends?
Derivatives?
I think Derivatives, but I don’t remember the details clearly, just remember the ‘bundle’ stuff
Here it is;
http://useconomy.about.com/od/glossary/g/mortgage_securi.htm
Definition: Mortgage-backed securities are a bundle of mortgages that have been sold by banks to Fannie Mae, who then repackages them and sells them to individual investors. This allows the banks and mortgage companies to sell mortgages off, and take them off their balance sheets. This removes one constraint on banks to make sure the loans are to qualified borrowers.
During the real estate boom, many less careful banks and mortgage companies made loans with no money down, thus allowing people to get into mortgages they really couldn’t afford. The lenders didn’t care as much, because they knew they could sell the loans, and not pay the consequences when and if the borrowers defaulted.
That's exactly what this is. Barack Hussein 0bama, all blessings be upon him, his strategy to redistribute wealth is to run the deficit up so much that there's no way to pay it down except to tax the snot out of the producers. It's why 2010 is so important.
Is dry heat better than moist heat?
Thanks.
Did Rush talk about the Frank Ferry Fairy Fare incident yet?
There, fixed it!
Hi
There probably more current stuff, but here’s a couple of things;
How to Make 19% Dividends from Bonds
By Tom Dyson
Tuesday, March 2, 2010
http://www.dailywealth.com/447/How-to-Make-19-Dividends-from-Bonds
A mortgage bond is a bundle of thousands of loans made by banks against people’s houses. Some of these loans might be paying as expected. Others might have defaulted. A few might be in bankruptcy. Some might have been resolved for cash. In short, unwinding these mortgage securities is a nightmare... and it’s going to be years before these mortgage bonds are split open, unwound, and liquidated.
In the meantime, these bonds are rotting on Wall Street balance sheets, dragging down earnings and preventing banks from making new loans.
Afternoon. I’m getting sick and tired of this Volt crap. You would think nothing else is going on in Detroit.
Not like 5 murders in the last 48 hours. Thought I was watching Chicago news.
BTW, a Volt also has a gas engine, for drive over 40 miles.
Small Law Firm’s Big Role in Bundling Mortgages
http://www.nytimes.com/2008/02/01/business/01legal.html?_r=1
New York state prosecutors are investigating whether Wall Street banks withheld crucial information from investors about the risks posed by subprime loans. McKee Nelson has not been subpoenaed in the investigation or accused of any wrongdoing.
But as investors’ losses mount, companies across the financial services industry are coming under scrutiny. Bankers, auditors and lawyers are bracing for a wave of lawsuits. One law firm, Cadwalader Wickersham & Taft, is already fighting a $70 million malpractice suit over its mortgage securities work.
“Anybody who touched the security in the process of creating or selling it is going to be subject to litigation,” said Joseph A. Grundfest, a business and law professor at Stanford and a former commissioner of the Securities and Exchange Commission.
The Internal Revenue Service, meantime, recently opened an inquiry into the special trusts that are typically used to issue mortgage securities.
That is correct, they changed their ratings from AAA to something a little lower, can’t remember exactly what they called them, but still a quality rating. They should have been junk. All because of the housing boom. Libtards ruined how most people saved for their retirement, house payments, all for the sake of so called social justice. They are diabolical scum.
one of the only records of obama’s past that we have access to was his participation in a law suit against a bank to force these loans - like everything in his life, his name was on the suit but i bet he did zero work on the suit
this economic collapse was the direct result of democrat ‘regulations’ - and now we are told only more of their brilliant regulation can save us
trillions of dollars in debt and voters don't know the reason for the collapse
Since Afghanistan is rich in Lithium Ion, can we say Barack Hussein 0bama, all worship be upon him, is “going to war for batteries”?
And it should make any other auto worker, outside of GovM/VOLT, mad about not getting a $7500 credit for their product
The Freep thread;
GM Volt’s price induces some sticker shock (the ObamaVolt Car)
http://www.freerepublic.com/focus/f-news/2560271/posts
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