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  • From: Clansgian AT wmconnect.com
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Wrong admission
  • Date: Wed, 24 Sep 2008 16:45:17 EDT



> >It's not the mortgages. Yes, they are a problem and yes the housing
> market has plotzed and people by the millions are having Troubles.
>
> >IGA wasn't issuing mortgages. They were trading unregulated credit
> swaps.

Here's where you mustn't loose track of the audit trail. What was the origin
of the credit swaps? The backing of the credit that is now the rotten core
of the problem are mortgage backed.

When several million people agreed to buy houses at inflated prices and take
out HELOC loans on the imagined increase in the value of their houses,
pension
plans, money markets, retirement funds, mutual funds, etc. all saw this as a
source of interest income. Once the MBS's are created, they are swapped
several times with each investor or buyer expecting to make some money on it.

The actual source of all this is the housing bubble and resulting worthless
mortgages. Without that it would not have happened. </HTML>




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