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etson – Did you see that the teacher w/ the barbells got off? The kids were baiting him & filming it to see how far they could go before he’d crack up.
^^^^^^^^^^
Just what I said, except with coherent grammar and proper spelling.
And etson, you unfairly ended up in my cross-hairs on this one. I know you get this stuff – I picked on you just because you used the “designed to be toxic” catch phrase.
If GoM drilling is restricted for a long time it’s clearly going to push crude up, perhaps $5-10. I think they will be keen to get drilling going again, though, because they need the revenues and don’t want gasoline prices spiking.
Also if the oil slick screws up shipping lanes it would lead to higher crude and gasoline prices (harder to import), but that would obvs be more temporary.
“But L, this was not a portfolio of normal MBS, it was a portfolio of hand-picked MBS consisting solely of sub-prime no-doc securities, no? It was not a balanced portfolio.”
So what??? That’s what they were betting on. What would happen with those kinds of mortgages. It’s not like the product was supposed to be for super high quality mortgages and GS and Paulson conspired to actually make it about subprime, it was 100% transparently designes to be a bet about what would happen to precisely the instruments that were identified. And again, this bet could have gone either way, and I can almost guarantee that the vast majority of people who think this was “designed to be toxic” probably were scoffing at housing bears when this trade was done.
The housing crisis and the financial crisis happened because of factors that are so much bigger than Goldman Sachs, so much bigger than any institution, so much bigger than any almost any human undertaking, that Goldman was powerless to create it and powerless to stop it. Yet people feell like they need to blame someone, and blaming themselves for stupidly buying overinflated real estate couldn’t possibly be right, and those guys at Goldman are all rich and the stuff they do is hard to understand, so it must be their fault. And here we are.
“but would you be saying this is a product that was designed to be toxic??”
But L, this was not a portfolio of normal MBS, it was a portfolio of hand-picked MBS consisting solely of sub-prime no-doc securities, no? It was not a balanced portfolio.
The words ‘toxic’ and ‘sub-prime’ seemed to be inevitably linked 🙂
etson – Did you see that the teacher w/ the barbells got off? The kids were baiting him & filming it to see how far they could go before he’d crack up.
^^^^^^^^^^
Just what I said, except with coherent grammar and proper spelling.
And etson, you unfairly ended up in my cross-hairs on this one. I know you get this stuff – I picked on you just because you used the “designed to be toxic” catch phrase.
“I wore my elephant tie from Ferragamo yesterday” – your rentboys give you gifts?
If GoM drilling is restricted for a long time it’s clearly going to push crude up, perhaps $5-10. I think they will be keen to get drilling going again, though, because they need the revenues and don’t want gasoline prices spiking.
Also if the oil slick screws up shipping lanes it would lead to higher crude and gasoline prices (harder to import), but that would obvs be more temporary.
“But L, this was not a portfolio of normal MBS, it was a portfolio of hand-picked MBS consisting solely of sub-prime no-doc securities, no? It was not a balanced portfolio.”
So what??? That’s what they were betting on. What would happen with those kinds of mortgages. It’s not like the product was supposed to be for super high quality mortgages and GS and Paulson conspired to actually make it about subprime, it was 100% transparently designes to be a bet about what would happen to precisely the instruments that were identified. And again, this bet could have gone either way, and I can almost guarantee that the vast majority of people who think this was “designed to be toxic” probably were scoffing at housing bears when this trade was done.
The housing crisis and the financial crisis happened because of factors that are so much bigger than Goldman Sachs, so much bigger than any institution, so much bigger than any almost any human undertaking, that Goldman was powerless to create it and powerless to stop it. Yet people feell like they need to blame someone, and blaming themselves for stupidly buying overinflated real estate couldn’t possibly be right, and those guys at Goldman are all rich and the stuff they do is hard to understand, so it must be their fault. And here we are.
oh well. Dow down 160. Took a small position in GS, added to RIG, and picked up some UCO. Probably all bad ideas. And now I have to walk the dumb dog.
“I forgot to mention it but I’m wearing my elephant tie today”
Funny, Dave. I wore my elephant tie from Ferragamo yesterday. (And one of the mean cat ladies yelled at me.)
“It’s sort of like having a public debate about whether or not the president has a US birth certificate”
Thought it was settled that he was born in Nairobi.
“but would you be saying this is a product that was designed to be toxic??”
But L, this was not a portfolio of normal MBS, it was a portfolio of hand-picked MBS consisting solely of sub-prime no-doc securities, no? It was not a balanced portfolio.
The words ‘toxic’ and ‘sub-prime’ seemed to be inevitably linked 🙂