Posted on 03/17/2008 6:41:36 AM PDT by Lazamataz
The bulk of subprime mortgages going into foreclosure were those issued to illegals, landlords (not all illegal) of overcrowded homes renting to illegals, or typically exploited blacks who were displaced from jobs by illegals.
If you do a little research rather than fall for the fog the money movers and politicians are putting out, you will see that there is a correlation, right down to the ZIP code, of the location of subprime foreclosures and concentration of illegal alien residences. (Realtytrac and Pew Hispanic Center websites).
Bear Sterns and their ilk created all this phony paper (CDOs, bonds) that required a huge amount of mortgage paper to support the bottom of their Ponzi pyramid. The low hanging fruit was a vast new mortgage market to house 20 million newly arrived illegals, equal to the population of New York state.
To win enough people like you over to a government bailout, they don't want this little secret out, because a steady stream of cheap labor is just as important to Wall Street as the phony money.
What gives me sour stomach is the fact that there are $750 Trillion in "derivatives" out there, some of which aren't understood by their creators, much less by the traders or admittedly by the Secretary of the Treasury or his crew.
By my math, if just 1% of these unwind abruptly due to margin calls or the like, it would cause a $7.5 Trillion train wreak, the consequences of which no one can estimate...but they would be bad, very bad.
You’ve got gas?
Bad investments happen in good times and bad times. Bandwagons always get going. It is human nature. To turn that into a sustained bubble requires lots of cash and credit. That is where Greenspan came in to help out.
No, but then I can’t afford a lawn either, so it really doesn’t matter.
And if just 0.1% unwound that is $750 B or about 3 Bear Stearnses.
Really? When exactly was that?
Thank!
***You may still be retired next year. But at a much lower-than-planned standard of living.
Hopefully not.***
I figure California might be nice. Live on the beach, no AC needed.
Eat free at the Salvation Army and other missions.
Showers at the beach campgrounds.
I need my friends there to find me a nice bridge to live under when it does rain.
Things are looking up!
Both. The story of credit is the story of triggering greed, losing common sense, etc. It's the difference between investing your own money for the long term and playing with someone else's money for short term gains.
Then please explain why there are so many investor owned new houses that are going into foreclosure that were financed with higher interest rate debt? I agree that illegals are a part of the story but I can also pick up the paper and read about some poor inner city people (black) who are “victims” of predatory lending lending by big bad banks. In both cases I cited they are not illegal related. Furthermore, there is also a difference in immigrant lending and illegals immigrant lending.
The Nasdaq crash was driven by bad investment from the VC side and stock deals where companies were buying companies left and right by printing their own money. One of my partners would wander by my office telling me that NORTEL or Lucent had bought another company for $3-4 billion in stock and no one would bat an eye goven how common the practice.
Also, you cannot ignore the mandate that telcos had to share their netwoks with competitors at sub market prices which gave rise to a whole bunch of pretenders that were never going to be able to be cash flow positive as well as their suppliers, and the lies that said Internet traffic was doubling every 9 months. Oh, and let’s also not forget the inability for companies to truly value E-business models. That was a whole other story....
Unless he was short.....
Uhhh... what freepers were those?
Dane, Bray and End Times Crusader come to mind.
NASDAQ was a sort lived run up. Took a year to ramp up then blow apart.
I just want to thank you for pointing me to the LAZ A MA TAZ portfolio, which has produced a 16.5% return YOY.
Keep up the good work.
That reminds me... I’d better sell my D’Anaconia Copper stock today.
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