We've all seen the signs around Intown Atlanta and Decatur - we all know that lots of houses are not selling. Here's two things to think about: 1. Personal Responsibility 2. Corporate Greed Ever heard of a "Special purpose vehicle?" No, I'm not talking about a paramilitary transport. I'm talking about how the Wall Street salesboys, and a compliant SEC (The Federal Government's Securities Exchange Commission) neglected the best interests of consumers with a hoodwinking flim flam job. Credit salesboys packaged good loans with bad loans and sold "Special Purpose Vehicles" to "institutions" like small and large pension funds and to municipalities, like small towns in Norway…Here's how they did it: The sales pitch is based on the idea that "housing always goes up in value and people can always refinance an adjustable mortgage." The products sold are financial market commodities known as collateralized debt obligations (CDOs) which are a type of … [Read more...]
