http://www.boston.com/bostonglobe/ideas/articles/2008/01/27/the_black_box_economy/ I think means we're getting own by the banksters...again.
The f**king banks. This is why my grandfather kept his cash under his mattress and in the freezer. Oh btw, did I mention that Obama gets nearly as much as Clinton in campaign donations from Wall Street? Wonder why....
Banks own everything! Your house, your car, your TV, your kitchen, everything you finance pretty much is owned by the bank (until you pay it off). Thats why I always use my credit card to pay for things, get those points and rewards and have it paid off automatically when due. The only thing I am paying (financing) for right now is my mortgage, which I intend on paying off as soon as I can. Big ticket items like my cars and motorcycles are all paid off.
Some one lends you 200K so you have a roof over your head and you get to keep the principle of what your house increases in value all in exchange for a 6% interest rate, boy you have it rough.
They talk in general how these new securities are how to understand and such but in reality they real aren’t that hard to understand. The basic point of it is that spread the risk of holding the mortgage among a group of people instead of one bank. Two. The main point of the CDO are that they are private contracts between two parties and its not the government responsibility to monitor private transactions. Also it looks like the writer of this article doesn’t understand the finaical markets either. Actually home vaules starting falling first which killed the market for CDO’s along with the defaults that came with rising interest rates on Arms. Another thing this person got wrong is Maybe it’s the supply of two million extra homes built with no buyer for them that helped drag home prices down, not whether CDOs could be bought and sold. Here he is wrong again There were some money market funds that were managed by the big banks that had some exposure to the home CDO market which were off the books but the majority of the CDO loans that they writen down the value off were on their books, which is why they wrote the value of them down.