http://www.marketoracle.co.uk/Article23741.html
Gee, I wonder if Ben and Timmy has read this yet?
Even if they haven't do yourself a favor and enlighten yourself.
It's a real easy read, without any bogus misrepresentation of the actual events occurring.
The "three strikes rule" is a mind blower, in how low the investment banks went to satiate their need for greed.
What I can't understand is, that in light of all that has come out, WHY THE HELL SHOULD THE TAXPAYER BE ON THE HOOK TO PAY FOR ANY OF THIS GARBAGE.
FRAUD AND EMBEZZLEMENT DON'T GET PAID FOR, THEY GET PROCECUTED.
At the end of last week's letter on the whole mortgage foreclosure mess, I wrote:
"All those subprime and Alt-A mortgages written in the middle of the last decade? They were packaged and sold in securities. They have had huge losses. But those securities had representations and warranties about what was in them. And guess what, the investment banks may have stretched credibility about those warranties. There is the real probability that the investment banks that sold them are going to have to buy them back. We are talking the potential for multiple hundreds of billions of dollars in losses that will have to be eaten by the large investment banks. We will get into details, but it could create the potential for some banks to have real problems."
Real problems indeed. Seems the Fed, PIMCO, and others are suing Countrywide over this very topic. We will go into detail later in this week's letter, covering the massive fraud involved in the sale of mortgage-backed securities. Frankly, this is scandalous. It is almost too much to contemplate, but I will make an effort.
But first, let me acknowledge the huge
