[Hostage]

You have a talent for displaying unadulterated ignorance. You are pointing nobody in the right direction. You think private equity is not a part of banks? Did you bother to read the thread article? Apparently not since the subject is the banks and their unregulated investing ventures. If you were fully knowledgeable rather than at most partially knowledgeable you would know that private equity hedge funds are affiliated with banks as their surrogates for hedging activities. Part of that activity was involving mortgage backed securities.

These hedge funds are permitted transactions with the Fed via authorizations with affiliate banks. So your claim about private equity not having access to the discount system is BS. They access the Fed the same as outsiders are authorized to access our bank accounts.

Yes banks allowed their hedge funds both to borrow funds and to buy the MBS that they underwrote and issued. The banks unloaded the subprime to preserve their own credit ratings and gambled that their hedge funds would yield a higher return.

We’re done here. You exhibit a sophomoric understanding of how the markets work. Further response is not needed.

[durasell]

We’re done here. You exhibit a sophomoric understanding of how the markets work. Further response is not needed.

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Hey, Toddsterpatriot is an FR tradition!

[jedward]

Mega Bump!!! Priceless...

[Toddsterpatriot]

You have a talent for displaying unadulterated ignorance.

Well, you are the expert in unadulterated ignorance.

You think private equity is not a part of banks?

I know that banks can borrow from the discount window while private equity firms cannot.

Yes banks allowed their hedge funds both to borrow funds and to buy the MBS that they underwrote and issued.

Banks and prime brokers lent money to hedge funds. Hedge funds bought MBS. Is this supposed to be secret info you're posting here? LOL!

Further response is not needed.

Stop posting bad info and I'll stop pointing out your errors.