On Fri, Feb 20, 2009 at 4:43 PM, Gruss Gott <[email protected]> wrote:

> Funny thing about that is I never heard of those sites until you told me.

What's funny is I learned about Wonkett from you.

> Like I said, this is not a political spin issue.  It has a specific
> objective truth that you can either choose to research and understand
> or you can listen political bullshit.
>
> You read political bullshit.  That's your thing.  If there's some way
> to turn facts into bullshit you find it.
>
> Everybody has to be good at something and you're good an making useful
> information useless.

OK, let's figure this out.

H = homeowner that has $300k mortgage, is here illegally and claims to
earns $15k a year if it doesn't rain a lot.
B = is the bank that loaned him the money
Ia, Ib and Ic = the companies insuring the loan or AKA credit swap
Ga, Gb, Gc = gamblers buying insurance, betting H can't make his payment


B gives money to H and buys insurance from Ia
Ia buys insurance from Ib in case he loses his bet, he'll be covered
Ga&b buy insurance from Ia.
Gc buys insurance from Ia, Ib and Ic. His bet of $18k will pay out
$900k if Manuel La'Bor aka H has a rainy year.

It rains a lot. H can't pay his loan.
Ia owes H, Ga, Gb and Gc 300k each = 1,200k
Ia has insurance from Ib so he's covered.
Ib owes Ia, Ga, Gb and Gc a total of 1,200k
Ic owes 300k to Gc

So a 300k default will now cost 1,500k

1) Clinton signed a law allowing Ia-c to take the bets that they can't cover.
He also forces banks to give loans to people like H nearly
gauranteeing a payout for Ga-c
The bankers that are closely tied to the democrats make hundreds of
millions and now work for Obama.
Gruss and Maureen blame Bush.

2) If our president and his tax cheating finance guy really were
geniuses they would pay off H's loan and now all payouts are off.
We're back to 300k. That means if we pay $200 billion in toxic loans,
the 40 trillion is no longer due, problem solved. That's not what
they're doing.

3) The $40 trillion number you keep throwing around covers every
mortgage in America. Since only a tiny portion can't pay the nut,
we're looking at a much smaller number of payouts.

4) Most of the insurance is covered by other insurance so Peter pays Paul.
Ia buys insurance from Ib and Ib gets insurance form Ic. It looks like
$1,500k needs to be paid out but it's likely just $300k when all's
said and done. We don't know how many, if any at all, G's are out
there waiting to collect.
But if there is, just pay the initial note and all's well.

5) I noticed you never sourced you're theory, I think I read back in
April George Soro's wrote an article making the same claim you do. I
think it was also covered in Mother Jones. Not so much in the
Economist.

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