Chain of fools - securitisation encouraged lax mortgage lend

**Hard evidence that securitisation encouraged lax mortgage lending in America **
3 (or maybe 4) words on this matter.

(Green :stuck_out_tongue:) Bear, Sh*t, Woods.

From the same website Chain of Fools

Wow! The mind boggles! Could most of this dicey USA stuff have ended up in Europe: high net worth Hedge Funds; Pension Funds, non affiliate European Banks? I believe that there could be a lot of the shite in Russia! Europe’s own dicey mortgages linked to overpriced housing has yet to implode :unamused: I was worried about the securitisations of Irish Mortgages on ballooning house prices before I ever heard of the Sub Prime debacle in the USA :confused:


An article in the New York Times has proposed that American taxpayers buy back all the rubbish from foreign holders

Green Bear posted the following

Yea! I referred to this before, but was unsure which way the mechanics would work out. A big block of our External Debt €1.5 trillion will end up on the National Debt presently 36,928 million euro, to be paid off by our taxation proceeds. If the Fed wants to bail out the European buyers of the Sub Prime, than they will have to borrow the money from Europe to do this. Our Government will be asked to share in this lending, as it appears that they have one of the most robust accounts in the EU (they let the citizens borrow instead, thinking that the citizens and government were different entities; the eejits) :unamused:

Basically, what it means is that we the taxpayer will have to stump up the difference between the fair value economic cost of houses sold and the ballooned amount paid over the past five to seven years! Don’t Worry! Be Happy! This will be no problem to our government, because all their real friends (not to be confused with the people who gave them number UNO) will be rescued from a disastrous situation: :wink:

See **Green Bear’s **posting at Sun Feb 10, 2008 8:12 pm on the Attention Northern Rock thread

This is how the National Debt of European countries will increase, when young adults are allowed to be exploited under the noses of government at home or abroad. It goes against all concept of natural justice to so obviously lumber young people with massive mortgages who would normally be expected to be the parents of the next generation. It has little in common with economics or real banking but has much in common with barbarianism