I will just keep posting this, until people really get it

[4 t 4]

6. Yea, and while everyone watches this
sad, sad, and awful situation just keep in mind we were all set up. The credit default swaps are the reason for this meltdown NOT the people with mortgages. I will say it again, If you went in for a mortgage on a house and lets say the house was worth 250,000 the bank told you it was worth 300,000 so you were given a montage for 300,000 the banks then changed the terms, big time, and you couldn't make the payments, but you also couldn't sell the house for the amount of the montage or more because it wasn't worth that much. So you were stuck. Couldn't sell the house for what you owed let alone a profit. Profit no way. Well here is when it becomes fun for the banks and Billionaire investors. You are going to default, duh. That's where the default traders from all over the world clean up, that's where the 350 Billion so far has gone to make good on the bets all over the world. I will admit I had no idea it was world wide until I did much reading and research. I couldn't figure out where all the money went until I did the research.

[liberalmuse]

1. You are absolutely right.

Yet the people, especially minorities are getting the blame. :mad:

[sandnsea]

2. I get it

The $50 billion scam is nothing compared to the mortgage scam these idiots knowingly perpetuated on all of us.

[MichiganVote]

3. Its all a game of musical chairs and there will never be enough money for all those involved.

The banks now keep our bail-out money because they need it. Mid 2009, after the bail out money is gone, the lawsuits will begin among the sharks at the top for what they feel they have lost. The only other deal on the table will be quiet take over deals and EVEN THOSE will all about who has liquid capital. No liquid capital, no bail out, no survival.

Its not over. They have shit on all of us and anyone who calls themselves a "regulator" should dies of shame. But of course....that would be the day.

[Hannah Bell]

4. Yep, the whole thing is purposeful. Yet we (= ordinary people around the world)

are being told to tighten our belts, accept being laid off, bankrupted, & in the worst cases literally starved to death - so that the owners of transnational corps & financial institutions can profit.

It's a crime & a horror.

[BeFree]

5. I got it, thanks

Yep, the bankers had all promised each other that they would make good on their credits between
themselves. When, suddenly, the loans went bad and the credits became due it was banker vs banker.

Can't have banker vs banker, so the government came in to keep the peace and making good on the banker to banker promises.

Gawd damn, those sorry mofos.

[Synicus Maximus]

6. Is that like the country saying my house is worth

$350,000 and taxes me on that but won't tell me who I can sell it to for $250.000 much less $350.000?

[leftofthedial]

7. the end days of capitalism

as they consume the last consumer

[Waiting For Everyman]

8. Bingo! Can we spell "set up"?

And then holding us all hostage. When are the indictments, I wonder?

[gristy]

9. comma police!

dependent clause!

[arthritisR_US]

10. petty police!

priorities fucked!

[glitch]

11. Lol! Thanks for that, I actually needed the laugh. nt

[arthritisR_US]

12. Merry Christmas :-) n/t

[SammyWinstonJack]

19. !!!

:thumbsup:

[tbyg52]

13. Any mortgage that is forclosed

for any reason other than a drastic change in circumstances of the homeowners, is THE BANK'S FAULT!

They are supposed to be the experts. If people with the same jobs, no divorce, no medical emergency, no other catastrophe, default on their mortgage, they were SET UP!

[Divernan]

15. Even drastic changes of circumstance foreclosures are banks' fault.

People who get transferred to a different geographic area, have to sell because of divorce, person dies and estate can't sell the house for enough to pay off the mortgage, etc. - they were set up by the banks too. BECAUSE these people are willing to sell, and even forego any profit, just to get out from under the mortgage payments BUT market values have been driven down way beyond even basic replacement costs. The values were driven down by the banks flooding the market with high risk mortgages. Sort of a falling tide beaches all boats.

An example - my friend in Ft. Myers Florida who bought her first home with a standard fixed rate, 20% down mortgage, following the formula that all her housing expenses (mortgage, insurance, taxes, utilities) be no more than 30% of her income. Then the fed agency she worked for closed their offices and she had to move to another state. She rented the condo (for which she paid $230,000) for a year since there were dozens of places for sale in her neighborhood for less than her mortgage balance. Many or them had never even been occupied - they were purchased by flippers. For another year she paid the costs for the empty condo while the house was on the market. She's received ONE offer - for $45,000! Under the GOP's changes to the bankruptcy law, she is screwed for years.

[tbyg52]

18. I see what you're saying, and agree

I was thinking of general circumstances, but these are extraordinary times. And I don't mean that in a good way. The people who still have money are snatching up bargains, just like they did in the last Depression. And the uphill flow continues.....

[Octafish]

14. Keep posting. The talking heads on the teevee seem to always bring up the wrong thing.

Kind of for "balance" that adds, em, plausibility to the other side's lies.

Why would Corporate McPravda do that? So they can help their owners and operators stash their share of the loot in Switzerland.

[xiamiam]

16. yep..you got it...disgusting...upside down middle class are the victims...nt

[Swamp Rat]

17. k&r

:hug:

[SammyWinstonJack]

20. I get it.

[rucky]

21. How do we know the same investors were betting against themselves?

and it seems like a net gain of zero for them.

MBS investors indicated they were "in the market" - and the ratings agencies and lenders accommodated by offering exotic loans. Seems like another set of investors that saw the risk were banking on the default swaps.

[Dreamer Tatum]

22. Nah, the spreads just weren't big enough

and third parties could buy CDS for purely speculative reasons.

Do we have data on who was buying CDS as a hedge, and who was buying them to speculate?

In any case, clearly the spreads were too small, given the odds of default.