Comments | the_recession: Financial Meltdown 2011? [via Global Guerrillas]

nebris in the_recession

Financial Meltdown 2011? [via Global Guerrillas]

Oct 13, 2010 20:03

Josh Rosner, a well respected banking analyst (via Naked Capitalism). He maintains: What if nearly all of the mortgages that were securitized (mortgage loans that were bundled and sold as securities) over the last decade are actually unsecured or worthless paper? A couple court cases forced by actions like this, could set off the stampede.
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financial crisis, macroeconomics, homeowner affordability stability plan, credit default swaps, the |_____ club, mortgage defaults, ponzi scheme, subprime, global financial trainwreck of 2007-?, foreclosures, 52 week lows, mortgage delinquency rates, real estate bubble, mortgage backed securities, economic collapse, corporate defaults, 'capitalism', 50 state slump

Comments 4

cieldumort October 14 2010, 06:35:31 UTC

Are any of us really surprised? The banking sector comeback has been predicated a great deal on lies all along, imho, and anyone who has been paying attention probably agrees with me on this. Mark-to-Make-believe can't go on for ever. So, yes, this may very well be the thing that restarts global financial meltdown. Sure, I give it 20% odds. That means 20% odds of a repeat of 2008-2009, or even worse.

Quote cieldumort October 14 2010, 06:53:04 UTC

“Well, if you’re right, we’re fucked. We never transferred the paper. No one in the industry transferred the paper.”

darksumomo October 14 2010, 07:05:47 UTC

This is a lot shorter than Kunstler's latest rant on this subject. I bet this news gives him a big stiffy.

badnewswade October 14 2010, 11:32:17 UTC

They'll sort it federally, with opt-outs for whatever podunk states want thier local housing markets to completely collapse. Remember that Western governments attitude to financial crime is to make it legal as long the perps are rich corporate bastards - just like they did with computer hacking and insider trading (they call it "High frequency trading" now).

Remember the golden rule; Whoever has the gold, makes the rules. Whatever happens, the rich just get more and more powerful.