More paper in those bundles than there are mortgages. I read that somewhere the other day.

[OregonBlue]

Can't find it now but I wanted to go read it again. If that's true, then wouldn't be likely that they keep telling up how complicated all those bundles and derivatives are because they are worried if there is a real audit, some people are going to go to jail? Is it possible Paulson decided not to buy up those bad assets because they would then have to do a full audit?

Did anyone else read that and if so do you remember where. I seem to remember it was a mainstream media (Washington Post, NYT, etc.) not a blog.

[sandnsea]

1. It's pure air

They created a market based on the idea of mortgage interest resetting to 10% or 15%. The entire value of the investment product is based on people paying this mortgage difference. I do not know why they couldn't figure out that people can't just fart more money out, but they couldn't. So obviously, there's no value there. They created the entire thing. And just because Europeans invested in OUR shitty mortgage market, doesn't mean there was anything wrong with their regulation.

I still think Paulson was right to just take the crap off their books and let them continue. As long as we help everybody who were sold these horrible mortgages to begin with. It was a Wall Street Scam from top to bottom.

Oh, but don't hate rich people. No. Don't do that. :argh:

[OregonBlue]

2. But according to what he said yesterday, they're not taking the crap off their books. They're

letting them keep the crap and just giving them enough money to keep afloat and start lending. The article I read said that there was more paper than actual mortgages written. If that is the case, and paper was sold with no mortgages to back it up, it's definitely a provable crime.

That was my question, could it be that they figured that out and decided not to take the crap off their hands because it would be inventoried and the discrepancies would be discovered?

Just asking.

[sandnsea]

3. Yes they are, now

I have no idea why they changed their strategy. You may be right about them not wanting an investigation.

But there were mortgages. What there isn't, is profit. What they will find is they way oversold the profit they would make from the mortgages. They expected to profit when they ARM went up, up, up. That's what they sold. They were delusional if they thought people could just pull several hundred dollars more out of their pocket. They don't understand how real people live. That's why I think they thought this scheme would work.

[Greyhound]

4. They never changed their strategy, they will just keep changing what

they say is their strategy. What do they have to worry about? Is anybody in power going to hold anybody accountable? Of course not, it is their club and we are not members.

This is just the parasite class blackmailing the American taxpayer into financing their exit strategy, pure and simple.

[sandnsea]

5. Reality. It applies to both sides.

Their strategy was to remove the bad debt from the balance sheets, making banks solvent again, restoring trust. They changed their strategy. That is a fact.

Now anything you have to say beyond that, you're welcome to it. But you have to start with the facts.

[Greyhound]

6. Right, they are just a bunch of stupid people with money that have no clue what is going on

or where it will lead...

[sandnsea]

7. Which means what??

Sorry. Don't follow your point.