Sub Prime has now taken Prime Time
It is just another Ponzy scheme, but done by large and so-called respectable players
The ultimate losers will be the tax payers and ordinary citizens who have either lost their savings or will be taxed more in future to pay for the rescue
This type of mis-adventure by the financial insitutions is a oft-repeated story, particularly in USA.
Remember the S & L crisis of a few decades ago.
The builders and real estate agents have made their money and now it is the turn of the vultures, who may buy the foreclosed properties cheap, to benefit
What a shame ?
Do you know that if you live in USA you can also get a NINJA loan?
That is people with 'No Income, No Job and No Assets' are given home loans
These are worse than 'Sub Prime' loans.
All these 'exotic' loans are then bundled into CDOs (Collateralised Debt Obligations) or 'Certain Death Ordnanace' perhaps and sold to Investment Banks, Money Market Funds, Hedge Funds etc
And if these Big Players lose their investment and go broke (the amount involved is upwards of $500 billion), then the Federal Reserve will step into lower rates, give them tax reliefs and may be even buy the properties foreclosed
Meanwhile the builders and real estate people laugh all the way to the Bank , if one is left standing that is.
Long Live the Fed
Only downside is you have to put up with George Bush and may have to go to fight in Iraq and come back in a body bag
Any takers?
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