New nortgage scam, greater than ever, sponsored by Goldman Sachs & their ilk
- Thread starter ByLoSellHi
- Start date
This is nothing but an attempt to ward off another round of real estate crash and foreclosures in masses. This refinancing will also give the homeowners more dollars in pockets..........to spend.........and thus recharge the economy and consumerism cycles.
This leads to a question.............that are we heading towards deflation or inflation.
This leads to a question.............that are we heading towards deflation or inflation.
How do I get in on this action ... I have been dealing with Chase for 6 months to reset my mortgage to a fixed rate and all they are doing is stalling stalling stalling.
The damned rates are at historic lows and I'm not even asking for a principal rake off ... I just want some of that 4.9% action!!!!
The damned rates are at historic lows and I'm not even asking for a principal rake off ... I just want some of that 4.9% action!!!!
its just a wealth transfer from taxpayers to the bankers, nothing new
I bet this is what's going on...
Given that there are home loans which are blended up and made into mortgage bonds which are re-blended up and made into CDO's, which are then insured by CDS's; and given that the ultimate leverage is an absurd multiple of the of the original backing individual home mortgage it's all based on; and given that the 'smart' money didn't understand squatola about this entire pyramid scheme through the entire process and considering they are now 'educated' and realize that the AAA bonds they bought based on BBB mortgage bonds have now been repriced to reflect that they are BBB and can be bought on the cheap.
Now, assume you have a smart team who can trace through the crap and find the original source loans, then find out if there are certain derivatives that are especially heavily leveraged on certain individual properties. Then buy up all the CDO's which are heavy in this group of properties and sell insurance on them. You are getting it dirt cheap, cause the 'smart' money knows they are going to crap shortly. THEN you shove the blade in their heart. You basically GIVE FREE MONEY to the home owner to ensure they don't default on the loan. Because of the leverage, you can afford the cost, and you control the default destiny of the loan, essentially CREATING a AAA product. You are doing the opposite of the subprime scam on the way up. Instead of selling BBB stuff at a AAA price, you are buying AAA stuff for a BBB price.
It's like selling fire insurance on a house you know can't be burned down. Brilliant. It's free money.
Now how do 'I' make money on it...
Given that there are home loans which are blended up and made into mortgage bonds which are re-blended up and made into CDO's, which are then insured by CDS's; and given that the ultimate leverage is an absurd multiple of the of the original backing individual home mortgage it's all based on; and given that the 'smart' money didn't understand squatola about this entire pyramid scheme through the entire process and considering they are now 'educated' and realize that the AAA bonds they bought based on BBB mortgage bonds have now been repriced to reflect that they are BBB and can be bought on the cheap.
Now, assume you have a smart team who can trace through the crap and find the original source loans, then find out if there are certain derivatives that are especially heavily leveraged on certain individual properties. Then buy up all the CDO's which are heavy in this group of properties and sell insurance on them. You are getting it dirt cheap, cause the 'smart' money knows they are going to crap shortly. THEN you shove the blade in their heart. You basically GIVE FREE MONEY to the home owner to ensure they don't default on the loan. Because of the leverage, you can afford the cost, and you control the default destiny of the loan, essentially CREATING a AAA product. You are doing the opposite of the subprime scam on the way up. Instead of selling BBB stuff at a AAA price, you are buying AAA stuff for a BBB price.
It's like selling fire insurance on a house you know can't be burned down. Brilliant. It's free money.
Now how do 'I' make money on it...
Many you're fuckin smart !
To give you an insight . Chase has been scrutinizing my mortgage for 6 months now . I've never been late on a payment and I'm barely upside down. They said the underwriter is crafting me a new mortgage such that they can sell it.
Even if they don't give me principal forgiveness (not that I need it) they seem to be crafting AAA tranches one way or the other. Given the chaos in Europe .. there might actually be a market for this debt of mine.
I just wish they would hurry the fuck up.