Wall Street investors in need of a replacement for the former cash cow of mortgage-backed securities (pre-bailout, that is) only had to look as far as a massive, bargain basement-priced stock of used houses obtained through bankruptcy sales coupled with a corresponding, unparalleled increase in prospective renters (aka former homeowners with few options for housing…

Read the rest

Image via Wikipedia Allowing an investor to design and to help select the debt that comprises a Mortgage CDO it plans to bet against, unknown to those who would later invest in the Mortgage CDO, is unthinkable–one would think.  But, apparently, that’s the way many on Wall Street work–without a moral foundation. The main faults of our federal…

Read the rest