Hold On to Your Hat, if You’re Invested in Mortgages
My old daddy used to say of Wall Street that there are two classes of investors—the sheep and those who shear the sheep. Daddy wasn't always right, but he was seldom wrong. Investors in mortgages and the gazillion derivative investment devices that are the spawn of the mortgage industry are about to get shorn.
My old daddy used to say of Wall Street that there are two classes of investors—the sheep and those who shear the sheep. Daddy wasn't always right, but he was seldom wrong. Investors in mortgages and the gazillion derivative investment devices that are the spawn of the mortgage industry are about to get shorn.
If they have their way, all early-warning systems suggest a hue and cry for government help. As in the Savings and Loan debacle of John McCain’s bad old days, it’s possible they’ll get it. Lots of power on the lobbying side of this, made up of the likes of Goldman Sachs, various REITs, banks and mortgage houses, all of them lined up nervously on the bad-debt wire, like so ma…