Michael Burry was able to figure it out from reading the prospectuses of sub-prime mortgage offerings. He knew the mortgage industry was scrapping the bottom of the barrel to keep the housing/building boom going; because, he understood how extreme sub-prime mortgages were, (eg lending in which interest, and even principle, payments were deferred until subsequent periods in order to qualify buyers.).
http://www.vanityfair.com/business/features/2010/04/wall-street-excerpt-201004 or http://tinyurl.com/yaghph7 Regards, LelandJ On 03/19/2010 09:50 AM, Nicholas Geti wrote: > http://finance.yahoo.com/tech-ticker/greenspan-finally-admits-he-blew-it-yftt_444802.html > > He also said that there is no way to detect when a bubble is forming nor how > to pop it. I still think that all our problems began when Congress permitted > banks and stock firms to merge then guarantee their home mortgage loans that > were then sliced, diced and resold. > > The personal wealth of all the executives was never at risk. So why not take > on mortgages, collect their fees then stick it to the government. > > > --- StripMime Report -- processed MIME parts --- > multipart/alternative > text/plain (text body -- kept) > text/html > --- > [excessive quoting removed by server] _______________________________________________ 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.

