Prosecutors Widen Probes Into Subprime

Wall Street Journal ^ | February 8, 2008 | AMIR EFRATI, SUSAN PULLIAM, KARA SCANNELL and CRAIG KARMIN

[Etoo]

Federal criminal prosecutors are stepping up their interest in Wall Street's mortgage-securities activities.

The Justice Department's U.S. attorney's office in Manhattan, based near Wall Street, has notified the Securities and Exchange Commission that it wants to see information the agency is gathering in its investigation of Merrill Lynch & Co., according to people familiar with the matter. The SEC is examining, among other things, whether the securities firm booked inflated prices of mortgage bonds it held despite knowledge that the valuations had dropped, the people say.

[KayEyeDoubleDee]

So now they're going to criminalize their own public policy?

THE REAL SCANDAL
By STAN LIEBOWITZ
February 5, 2008
http://www.nypost.com/php/pfriendly/print.php?url=http://www.nypost.com/seven/02052008/postopinion/opedcolumnists/the_real_scandal_243911.htm

PERHAPS the greatest scandal of the mort gage crisis is that it is a direct result of an intentional loosening of underwriting standards - done in the name of ending discrimination, despite warnings that it could lead to wide-scale defaults...

A trillion here, a trillion there, pretty soon we're talking about real money
http://isteve.blogspot.com/2007/08/trillion-here-trillion-there-pretty.html

The Subprime Meltdown: The NYT finally gets a clue (sort of)
http://isteve.blogspot.com/2007/08/trillion-here-trillion-there-pretty.html

[2harddrive]

Such is the story of SubPrime CRIME....

[Etoo]

Explain how and why AAA sub-prime securities got downgraded to Junk status.

[KayEyeDoubleDee]

Explain how and why AAA sub-prime securities got downgraded to Junk status.

The point is that they never should have been AAA in the first place - they were always Junk status.

The government forced the banks to loan to people whose average IQs are down around 85 - there is no way in Hades that those people could have ever made the payments once those payments ballooned.

Only people who believe in fantasies like multiculturalism, global warming, and the tooth fairy could have thought otherwise.

PS: The subprime debacle is just the tip of the iceberg of the demographic catastrophe which is heading for the USS Titanic.

Prepare accordingly.

[Etoo]

>>they never should have been AAA in the first place

Yes, but how DID they manage to get that AAA rating? \

Hint: Aggregate FICO.

>>The government forced the banks to loan to people

The government was not forcing predators to systematically game regulatory weaknesses.

Roland Arnall’s Sub-Prime machine did that ALL by itself.

Fabrication of FICO scores was not a Government requirement.

[KayEyeDoubleDee]

It was all a fantasy from the get-go, from the moment the government started pressuring the banks to make the loans.

PLEASE, read the articles I've linked to above.

This idea that people with IQs of 85 can perform like people with IQs of 115 is simply ludicrous. It's nonsense. It's like believing in the tooth fairy.

And the fantasy is about to destroy this nation.

[Etoo]

"Only people who believe in fantasies like multiculturalism, global warming, and the tooth fairy could have thought otherwise."

 

Ameriquest Rainbow Blimp, to the Left of Hollywood. 

 

 

Natural Born Predators

[Etoo]

"This idea that people with IQs of 85 can perform like people with IQs of 115 is simply ludicrous. It's nonsense. It's like believing in the tooth fairy.

 

And the fantasy is about to destroy this nation."

 

 

An idiot workerbee is a happy workerbee.   Buy more, Bee happy.

[KayEyeDoubleDee]

An idiot workerbee is a happy workerbee. Buy more, Bee happy.

But the point is that an idiot worker bee, with an IQ of 85, can't do the things that a smart worker bee, with an IQ of 115, can do.

Like, for instance, be able to afford the monthly payments on a $200,000 home.

As you indicated above, the only way you can make that fantasy work is if you fabricate the FICO scores. And you can't fabricate them willy-nilly on an ad hoc basis - you have to fabricate them on a society-wide basis [i.e. governmentally], which is why I say that the government is now criminalizing its own public policy - a policy which held that people with IQs of 85 are capable of making the same monthly payments as people with IQs of 115.

But you can only play these make-believe-pretend games for so long: Sooner or later, the demographic imperative is going to swallow you up and eat you alive.

So, again, prepare accordingly - you have only seen the tip of the iceberg of the demographic catastrophe which is heading for us.

[Etoo]

"Sooner or later, the demographic imperative is going to swallow you up and eat you alive."

 

 

That is by design.  

[Etoo]

"But the point is that an idiot worker bee, with an IQ of 85, can't do the things that a smart worker bee, with an IQ of 115, can do.  Like, for instance..."

 

Like for instance challenging the authority of the Oligarchs?