For those struggling to understand the subprime..

[sendero]

... crisis, this little cartoon does an excellent job of explaining it.

Warning, there is some foul language here :)


http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true

[barbtries]

1. google docs error n/t

[sendero]

2. I fixed that....

... sorry, my fault. It is working now.

[ThomWV]

3. Beautiful!

[crispini]

4. That was quite funny, and educational too!

Did you make it?

[sendero]

6. No...

... I'm not at all artistic.

But I have to admit, the language is pretty much me :)

[barbtries]

5. ok - now i get it

a bunch of larcenous pigs making money out of thin air. no, off the backs of the poor. thanks for posting

[sendero]

7. Yep...

... that's about it. I have to admit that it's nice that, for ONCE, the pigs are getting theirs too.

[flashl]

8. Good job! nt

[whatchamacallit]

9. Hahahaha, so fucking awesome!

:rofl: Hey wait, why am I laughing?

Good stuff.

[Yael]

10. That is awesome

Thanks!

K&R

[Prefer]

11. How accurate is it though?

[sendero]

12. I believe...

... that it is essentially correct.

There are some minor things, it's "tranches" not "traunches" and generally SIVs rather than SPVs, but the gist is right.

[Ghost Dog]

13. .perfect. absolutely accurate.

slide #42/45 :rofl: everybody fucked up (while some paid themselves handsomely and grew rich).

[Snarkoleptic]

14. Pretty much on the money...but

I object to the way that the mortgage broker is portrayed as the instigator.
Much of the bad paper was written by the big retail mortgage outfits like Countrywide, Wells Fargo, National City, etc.
If you're looking to blame someone for the current spike in foreclosures and the present liquidity crisis, I suggest you look at-
The Federal Reserve...for lax monetary policy (in hopes of having the housing sector spur the economy)
Wall Street...for their greed in green lighting a mind bending expansion of exotic products (esp. in subprime and Alt-A)
Bond Rating Firms...who were asleep at the switch and consistently mis-rated CDO's and MBS's as 'investment grade'
Lenders...for responding to Wall Streets open floodgate by reducing underwriting standards to a cursory overview
Investors/speculators...for using the lenders easy money to play a risky game of speculation in real estate
Borrowers...many buyers lied about their income, job history, and intent to occupy the property (Lenders turned a blind eye to this as well)

As a mortgage broker, I specialize in mortgage planning and go beyond the loan application to find out what the borrowers short and long term goals are.
Try getting solid mortgage planning advice and a competitive rate from the industry newby $25K/year loan clerk at the bank.

[sendero]

15. I don't disagree with you..

... but I will say this.

There is one particular mortgage company in Dallas that stooped to the lowest of the lows in selling these toxic (ARMs (there is NO reason to buy an ARM when rates are already at 40 year lows), zero-down, interest-only, "stated income", etc, etc, etc) loan products when they knew damn well what they were doing.

Back in 2005 I started posting here about how this would all end badly, I had no idea at the time just how badly.

There are many players to blame, but the ones running 24/7 radio spots pushing this crap deserve a special place in hell.