Reply #20: The mortgages have value

[Robbien]

You are getting confused. The mortgages have value.

The instruments not having value is the creative debt instruments which have been created based on the mortgages.

For every dollar loaned out in mortgages, ten dollars of CDOs were created by banks. Then on top of that $32 dollars were created by hedge funders for every bank CDO dollar. Then on top of that, swap derivatives grew.

So the base mortgage could be good, but it is buried under a mountain of debt created by these Predators who you admire so greatly. The Predators who you want to bail out.