Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Washington Post Article: "An Unsavory Slice of Subprime"
Old 10-21-2007, 01:45 PM   #1
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,946
Washington Post Article: "An Unsavory Slice of Subprime"

Good, somewhat technical explanation of the mortgage mess:

washingtonpost.com
__________________

__________________
jazz4cash is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-21-2007, 06:39 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,251
Interesting article... and it rings familiar.... I used to be a trustee for issues like that...

I remember buying an investment once for one of my trusts... it looked like a swap of US gvmt issues.. but underlying that US issue was another swap of Venezuelan debt... SO, someone was thinking they had US debt when they actually had Venezuelan debt... talk about getting fleeced if you are not looking at things..

MOST CMOs or CDOs were better than the one shown, but back in the 80s some of the mortgage issues by Housing districts (which were first mortgages) had up to 50% default rate... the Z bond and the lower ranked bonds got hit hard... but it is hard to determine what is good and what is bad.
__________________

__________________
Texas Proud is offline   Reply With Quote
Old 10-21-2007, 07:53 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,946
What smokes me is GS going short after placing the issue!
__________________
jazz4cash is offline   Reply With Quote
Old 10-21-2007, 08:18 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Quote:
Originally Posted by jazz4cash View Post
What smokes me is GS going short after placing the issue!
The guys at GS didn't take home multimillion bonus each year by being dumb. Now sometimes they aren't nearly as smart as they think and the pay for their hubris. I think shorting something they just sold a client is slimey but not stupid.
__________________
clifp is offline   Reply With Quote
Old 10-21-2007, 11:08 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,380
Excellent article. Thanks for posting it. Allan Sloan took the time and got the help he needed to write something that really contained information.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 10-22-2007, 12:31 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,072
Thanks for the link - excellent article. This all reminds me of betting at the craps table - you could cover your bets many ways - so they offered a product and then covered their bet of that product losing money by shorting it as well. Gambling - eh?

This combined with the Technology Review article are great reading - reminds me of the great stories in the WSJ of how those dotcom companies would spend all of their newly found wealth on parties, jets and stuff unrelated to the 'business.' Yet another get rich quick scheme gone bad.
__________________
Deserat aka Bridget
“We sleep soundly in our beds because rough men stand ready in the night to visit violence on those who would do us harm.” - George Orwell/Winston Churchill
deserat is offline   Reply With Quote
Old 10-22-2007, 12:57 PM   #7
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Quote:
Yet another get rich quick scheme gone bad
.. not for Goldman Sachs that gives you the shaft.
__________________

__________________
Spanky is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
"Buy & Hold" Asset Allocation article ladelfina FIRE and Money 7 06-09-2007 01:25 PM
"Hi, I am" needs a "Read this first" post? HobbyDave Forum Admin 3 05-17-2007 10:39 AM
Great article "Ten Reasons You Aren't Rich" Surfdaddy FIRE and Money 5 03-24-2007 01:19 AM
"Many Plan to Keep Working Into Retirement" article wildcat Other topics 6 08-17-2005 07:49 PM
ER article:  "American Fairy Tale" malakito Other topics 45 08-16-2004 09:20 PM

 

 
All times are GMT -6. The time now is 07:51 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.