Tilted Forum Project Discussion Community - View Single Post - 1992 Redux: Will "it's the economy, stupid", Be The Big Campaign Issue?

host · 03-14-2008, 11:17 AM

ottopilot, thank you for your informed response....

Do you think it is at all ironic that Bear Strearns was one of the top two "packagers" and issuers of mortgage backed securities, <h3>and the consequence for them is a bailout, a "do over"?</h3>

Do you grasp that the intent of packaging "tranches" of thousands of individual mortgages together and then selling them as "mortgage backed" bonds and other securities was to make it impossible to assess the actual credit quality, the risk of owning these instruments?

Doesn't it follow, that with the risk cloaked, and "credit quality" enhanced by bond insurance "coverage" that will end up being insufficient to cover investor loss claims, the supply of mortgage loan money, lent out at low interest rates to the last group of non-homeowners.....the ones who were not of a high enough credit quality to lend money to.....became qualified, was a criminal conspiracy, with the participation of the Fed, the OCC, and the "primary dealers, and of course, the congress and the president ?

Everyone loved the scheme, because "new money".....the last ones in.....was all that was required to keep home valuations appreciating, and the response from all Amercia was serial, "cash out" refis...... MEW...mortgage equity extraction was the "name of the game".....roll over your credit card balances and your car loan balance, into your new, larger, 30 year mortgage....

The "miracle" effect of the "Bush tax cuts".....or Ottopilot, do you think, other than posting a comical pic....meant to make me look "silly", this is all about something else than I have described.....why would your reaction be to try to make me look "silly".....is your uhhhh "belief system" feeling a little angst, over this "news".....or something???

03-14-2008, 11:17 AM	#126 (permalink)
host Banned	ottopilot, thank you for your informed response.... Do you think it is at all ironic that Bear Strearns was one of the top two "packagers" and issuers of mortgage backed securities, <h3>and the consequence for them is a bailout, a "do over"?</h3> Do you grasp that the intent of packaging "tranches" of thousands of individual mortgages together and then selling them as "mortgage backed" bonds and other securities was to make it impossible to assess the actual credit quality, the risk of owning these instruments? Doesn't it follow, that with the risk cloaked, and "credit quality" enhanced by bond insurance "coverage" that will end up being insufficient to cover investor loss claims, the supply of mortgage loan money, lent out at low interest rates to the last group of non-homeowners.....the ones who were not of a high enough credit quality to lend money to.....became qualified, was a criminal conspiracy, with the participation of the Fed, the OCC, and the "primary dealers, and of course, the congress and the president ? Everyone loved the scheme, because "new money".....the last ones in.....was all that was required to keep home valuations appreciating, and the response from all Amercia was serial, "cash out" refis...... MEW...mortgage equity extraction was the "name of the game".....roll over your credit card balances and your car loan balance, into your new, larger, 30 year mortgage.... The "miracle" effect of the "Bush tax cuts".....or Ottopilot, do you think, other than posting a comical pic....meant to make me look "silly", this is all about something else than I have described.....why would your reaction be to try to make me look "silly".....is your uhhhh "belief system" feeling a little angst, over this "news".....or something??? Last edited by host; 03-14-2008 at 11:20 AM..