Cartoon: The Subprime Primer
February 22nd, 2008The firm externalized the financial risks of being in this business by selling all of the paper they generated into the secondary mortgage market at the end of every month. This is an institutional marketplace that trades in commoditized mortgages, “debt paper.” In other words, at the end of each month, the firm had none of the impossible-to-payback-negative-amoritization-no-money-down loans on their books!
I handled some issues for the secondary marketing department, even, would you believe, for the person who pulled the trigger on these paper dumps at the end of the month.
“Who buys this stuff?” I asked.
“Oh lots and lots of people. Well, banks and insurance companies mostly. [Large European Bank name deleted] buys a lot of it.”
Pookie sent this hilarious and terrifying cartoon about the subprime mess. She found it on Jim Sinclair’s Mine Set.
The Subprime Primer WARNING: Includes naughty words.
