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Originally Posted by checkthisout
Ok, I have half a million dollars. Please direct me to where I can go to buy an MBS or a Security backed by Credit Card debt etc.
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Be happy to.
How to Buy Mortgage Backed Securities | eHow.com
"Purchase mortgage backed securities from your local broker. You must open a brokerage account first. The broker will then purchase the mortgage backed security. There is a cost for the purchase, but not the brokerage account. Minimums on mortgage backed securities are $25000 with CMO's as low as $5000."
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What about on the upswing? If I have to loan against deposits then supply and demand states that if I want to be able to loan more money that I have to raise the amount of interest I pay in order to attract deposits, correct? With securitization, that doesn't need to happen. When the debt is sold to foreigners by Wall Street, the money supply increases with no increase in the amount of interest that must be paid to depositors but the bank is still liable to pay the debt if the borrower defaults. If the bank has sold the mortgage on a speculative exchange then it is able to collect more than the principle up front and post that as profit before it even collects the first payment from the borrower. This "profit" then gets paid to CEO's and the dealers and of course shareholders lots of whom may also be foreigners.
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Not sure what you've been reading or listening to but, your
conspiracy theory has so many holes and incorrect assumptions, that I couldn't change your mind if I wrote the rest of the night.
Nope.
Just a comment.
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The same thing we did since 1933 up until 1999, do not allow investment banks and your neighborhood banks and insurance companies to interact in anyway whatsoever. This way the fraudsters and speculators on Wall Street cannot steal money from the American people in the form of debt obligations to foreigners that could never possibly be repaid.
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I agree with repealing the GLBA and reinstating Glass-Steagall.
But that has nothing to do with foreigners buying the resultant products.
You're incorrectly mixing the two.
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I bet a lot of the securities that were sold were nothing more than fraud that had no income stream to back them whatsoever. Of course with the group of advisors that Obama has none of this will ever be investigated and Obama sure doesn't give the first care about doing the right thing.
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Ummmm..........the lack of regulation, non-existant enforcement and looking the other way...............didn't happen on Obama's watch.
