All New York Contractors Terminated at major division of an IB

[PAH]

they sold these so called AAA investments onto.

Saw a programme last night about the super rich and how it all ties into the USA sub-prime market with all those dodgy mortgages being packaged as AAA safe investments.

Aren't whoever packaged them as AAA being investigated for fraud or some other crime, otherwise what's to stop them doing it again? From the programme it sounded like a lot of it was down to poor use of historical data/statistics, though I'm sure greed and passing the hot potato is a large part of it too.

[BrilloPad]

Saw a programme last night about the super rich and how it all ties into the USA sub-prime market with all those dodgy mortgages being packaged as AAA safe investments.

Aren't whoever packaged them as AAA being investigated for fraud or some other crime, otherwise what's to stop them doing it again? From the programme it sounded like a lot of it was down to poor use of historical data/statistics, though I'm sure greed and passing the hot potato is a large part of it too.

There was an interview recently with someone who did a similar scam with llyods names. on his yacht. he said "if god did not want them to be fleeced he would not have made them sheep".

The loans were made to ninjas(no income no job) and assumed that, because of rising house prices, not all would go bust. The loans were divided into Tranches where they take a proportion of the money returmed e.g. first 30%, next 40%, last 30%.

Moodys and S&P approved the ratings. There may well be a class action against them - but ultimately the money has already gone to the super rich. Lets say that Moodys do go bust - I bet the execs will have golden parachutes.

Unfortunately the only ways to stop the rich scamming the poor are :-
1. the poor to be interested in the real world(as opposed to big brother)
2. depression (i.e. recession where bankers also suffer)

[PAH]

2. depression (i.e. recession where bankers also suffer)

I think they'll be very depressed if they all end up nationalised!