Comments on: It Was a Wonderful Life – And Then Came Securitization

By: With T-Bill Yields at Zero, it's Time to Beware of the "Bond Bears"

With T-Bill Yields at Zero, it's Time to Beware of the "Bond Bears" — Wed, 09 Dec 2009 05:45:50 +0000

[...] unregulated, and not tied to organized exchange like the Big Board (NYSE). It is here that credit default swaps (CDS) trade. These are basically insurance contracts that protect against the failure of bond [...]

By: Francis Koh

Francis Koh — Wed, 11 Nov 2009 08:23:41 +0000

Does it mean that the occupants of the house who are in default of the mortagage cannot be forced out of their homes as there are no idetifiable owners?

By: Francis Koh

Francis Koh — Wed, 11 Nov 2009 08:14:09 +0000

If the owners can’t foreclose, how can anyone kick the borrowers of the mortgage in default of the loans out of the houses? The latter can stay indefinitely in the properties and not pay for the mortgage at all as the property owners cannot be identified!

By: Chris Kinlan

Chris Kinlan — Tue, 10 Nov 2009 19:29:55 +0000

OK – following the judge’s logic –

Suppose there was an individual not in default – their loan was packaged and repackages and sold a couple of times (just like the default example). Now the individual seeks to refinance their loan – how can the original/individual mortgage be traced to be closed out so the new loan can replace the old one?

I am looking for a serious answer – ckinlan@hotmail.com

It really seems like in the case I state there will be nothing that can be done for you regardless of stellar credit. Also – it seems to follow that the best case is to default because if they can’t trace your loan in the default case – there is little reason to think they can trace it in the non default/refinance case.

By: Don Fishgrab

Don Fishgrab — Tue, 10 Nov 2009 18:44:40 +0000

Unfortunately, reform efforts seem to all be fucused on expanding the status quo, rather than correcting the problems. The proposed health care reform protects the problems, but requires that everyone submit to being victimized. The Credit card changes have permitted exhorbitant rates, and the regulations on banking institutions are being administered by consultants of the companies they regulate.

Part of the problem is that elected officials have managed to exempt themselves from the consequences of their decisions. They represent those who pay most, not those who elect them. Term limits and tougher ethics requirements might help reduce the problem, but will not eliminate the self interest at every level.

By: joe blowe

joe blowe — Tue, 10 Nov 2009 16:19:38 +0000

We should refrain from using the term ‘FREE MARKET’.
As long as the FED can control the cost of our most important commodity, Money, and the Banks can perform the miracle of multiplication of cash through Fractional Leverage, is NOT a FREE MARKET.
The ‘Derivatives Market’ stands at 589 Trillion Dollars – the madness is still with us. This is about 10 times the GDP of the world in a year (give or take a few trillion).
See: http://www.usdebtclock.org

By: Brendett NC

Brendett NC — Tue, 10 Nov 2009 14:35:10 +0000

POLITICS,MONEY,AND GREED RULES THIS COUNTRY CALLED THE UNITED STATES OF AMERICA PERIOD.
NOBODY FIGHTS FOR THE LITTLE PEOPLE WHO RUNS THIS COUNTRY!
IF YOUR NOT RICH IN THE UNITED STATES YOU ARE A NOBODY!
MONEY IS THE ROOT OF ALL IMMORALITIES IN THE UNITED STATES OF AMERICA. WE CAN THANK OUR FEDERAL GOVERNMENT FOR THE WAY PEOPLE FEEL ABOUT MONEY TODAY!
MAJOR BANKS WITH THERE CHIEF EXECUTIVE OFFICERS DID RESORT IN UNDERHANDED BUSINESS ENTERPRISE. IT PUT MORE MONEY IN THERE BACK POCKETS CALLED CROOKED DEALINGS THEY DIDN’T EVEN CARE ABOUT THE CONSEQUENCE FROM THERE ON ACTION ! NOW THE PEOPLE HAD TO BAIL THEM OUT OF THERE ON STUPIDITY.
THERE IS NO COMMONSENSE IN THE UNITED STATES OF AMERICA!
MAJOR BANKS, AIG, Federal Home Loan Mortgage Corporation WALLS ALL CAME TUMBLING DOWN THE HOUSE THAT GREED BUILT!

By: contentprovider

contentprovider — Tue, 10 Nov 2009 13:57:26 +0000

finally a sober judge in America. Securitization is not only illegal, its illogical, unconscionable and without ethical rational..

But What about MERS.. that too is a hiding mechanism.. which follows the same logic and imposed the side “hidden in the forest” assuredness as does Securitiziation.