I know someone who works in Irvine. She said during the weeks of the New Century meltdown, you would drive by the Irvine Porsche dealer and it was flooded with lease returns. They would come in the morning and literly dozens of porsches were parked on the street in front of it and on the lot with the keys shoved in the mail slot with notes basically saying, “take it, we can’t pay for it anymore.”
I’ve witnessed this meltdown first hand as well. I work for a major US bank that is a heavy mortgage house. One of the groups I supported was the mortgage backed security broker dealer. It’s been sureal watching the whole thing unfold and that whole division crash and burn.
But when times where good, it was staggering how much money they were making and how quickly the deals were coming in.
But all based on liars loans aka alt-a and subprime toxic waste.
What percentage of alt-a loans are still good? How about subprime?