Pete Theisen wrote: > Leland Jackson wrote: > > >> On June 2, 1987 President Reagan nominates Greenspan for chairman of the >> Federal Reserve Board, which he served for five terms until January 31, >> 2006. He served under the following presidents: >> >> 2 terms - Ronald Reagan - Republican >> 1 term - George H. W. Bush - Republican >> 2 terms - Bill Clinton - Democrat >> 2 terms -George W. Bush - Republican >> >> Therefore, the republican must assume 5/7 responsibility for the credit >> crisis, and the Democrats must assume 2/7 responsibility for the credit >> crisis. LOL >> > > Hi Leland! > > Your usual D spin, It was one year of Greenspan under Reagan, not two > presidential terms. Anyway, the **** all came down in Bush W's term, > more the war than anything else. A war that *should* have been fought > and won on C-man's watch. >
Evidentially, the mortgage companies were putting together portfolios of mortgages and selling them on the stock exchange as high yield investments worldwide, (eg Mortgage Backed Securities, a kind of derivative). These kinds of investments were supposedly safe LOL ; because, they were collateralized, (eg backed) by real estate like houses, building, etc and payments guaranteed by the big banks through credit default swaps. Everyone wanted into these Mortgage Backed Securities, as the returns were so high and the value of the collateral was also high as the bubble grew. Then when the housing market went south, all hell broke loss. These Mortgage Backed Securities were brought and sold long and short as people bet on the value derived from the underlying mortgages which provided the income for the cash distributions to investors. Regards, LelandJ _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
