[FreedomPoster]

This is an interesting bit of economic history, given current events.

Again, this is the press release for "the industry's first public securitization of CRA loans."

Let that sink in for a minute.

Note all the CRA references. People would do well to understand the government's involvement in this financial event from the beginning, and the CRA is at the heart of it.

[Wuli]

So Bear, Stearns & Co. Inc. was the first to securitize a package of CRA debt, and it was the first to go under in the current “cisis”. Kinda poetic justice.

[IamConservative]

The $384.6 million in senior certificates are guaranteed by Freddie Mac and have an implied "AAA" rating.

Therein lie the problem. Junk bonds got AAA rating because Freddie Mac was in the loop. Privatized profit, socialized risk. In reality, all the $700B bailout is is a trade of junk bonds for new AAA rated Treasury bonds. The $700B in new bonds is going to come from the same credit market that is supposedly frozen.

[Antoninus]

And First Union (aka, FU) merged into Wachovia which is now one of the big banks which is often mentioned as on the ropes.