The Conservative Cave

Current Events => Economics => Topic started by: Chris_ on April 20, 2013, 05:26:16 PM

Title: Wall St. Redux: Arcane Names Hiding Big Risk
Post by: Chris_ on April 20, 2013, 05:26:16 PM
Quote
Wall St. Redux: Arcane Names Hiding Big Risk

The banks that created risky amalgams of mortgages and loans during the boom — the kind that went so wrong during the bust — are busily reviving the same types of investments that many thought were gone for good. Once more, arcane-sounding financial products like collateralized debt obligations are being minted on Wall Street.

The revival partly reflects the same investor optimism that has lifted the stock market to new heights. With the real estate market and the economy improving, another financial crisis seems a distant prospect. What’s more, at a time when the Federal Reserve has pushed interest rates close to zero, the safest of these new investments offer interest rates almost double that paid by ultrasafe United States Treasury securities, according to RBS Securities, which was involved in such instruments in the past.
New York Times (http://www.nytimes.com/2013/04/19/business/banks-revive-risky-loans-and-mortgages.html?_r=0)

This is great news because Barack Obama is also pushing for more subprime loans to the same people who couldn't afford them last time.
Title: Re: Wall St. Redux: Arcane Names Hiding Big Risk
Post by: J P Sousa on April 20, 2013, 05:57:53 PM
Quote from: Chris_ on April 20, 2013, 05:26:16 PM
New York Times (http://www.nytimes.com/2013/04/19/business/banks-revive-risky-loans-and-mortgages.html?_r=0)

This is great news because Barack Obama is also pushing for more subprime loans to the same people who couldn't afford them last time.

The economy hasn't collapsed yet so Barry has to give it another try with cooperation from his Wall Street buddies. As was discussed in another thread, Soros isn't dead yet. :censored:


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Title: Re: Wall St. Redux: Arcane Names Hiding Big Risk
Post by: Lacarnut on April 20, 2013, 05:59:59 PM
Before the Magic Negro leaves office, I predict that we will have another recession or financial meltdown. The morons at the W.H. think happy days are here again but I think not. Just wait till all the new taxes kick in. The AMT tax will hit many middle income taxpayers in the pocketbook when they file Fed. taxes for this year. Plus, the gov. will try to steal money out of your 401k to fund increase spending.  
Title: Re: Wall St. Redux: Arcane Names Hiding Big Risk
Post by: NHSparky on April 22, 2013, 09:09:33 AM
All the more reason to invest heavily in canned food and shotguns.