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To: cw35
They didn’t loose their minds. They were always going to sell the paper they issued. They weren’t dumb enough to hold it.

SO WHO BOUGHT the BAD PAPER??? I NEVER could figure that out!

15 posted on 06/15/2008 6:10:09 AM PDT by Ann Archy (Abortion.....The Human Sacrifice to the god of Convenience.)
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To: Ann Archy
SO WHO BOUGHT the BAD PAPER??? I NEVER could figure that out!

Pension agencies, bond funds, money market funds, hedge funds and foreigners to name a few. In the case of bonds funds and money market funds the hints to whether they had the toxic paper was in the prospectus.

17 posted on 06/15/2008 7:49:48 AM PDT by EVO X
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To: Ann Archy

You are forgetting that it was not sold as “bad paper”. It was sold as “AAA” rated paper. Think Treasury Bonds that pay more interest. That is what investors thought they were getting. They had not clue they were buying junk bonds. They were defrauded, pure and simple, by the rating agencies who rated them at “AAA”. That is who bought the bad paper — conservative investors looking for a modest rate of return on a bullet-proof investment about as safe as cash.


21 posted on 06/15/2008 1:41:58 PM PDT by Freedom_Is_Not_Free
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