http://www.thedisciplinedinvestor.com/blog/2007/08/28/hedge-fund-rats/ Investment Disciplines and Timely Advice. Fri, 10 Feb 2012 21:15:03 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.thedisciplinedinvestor.com/blog/2007/08/28/hedge-fund-rats/comment-page-1/#comment-370 Howard Veit Wed, 29 Aug 2007 15:29:12 +0000 http://www.thedisciplinedinvestor.com/blog/2007/08/28/hedge-fund-rats/#comment-370 As we look more and more it is becomming clear that nobody anywhere knew what they were doing. The loans to consumers were called "liar loans" because all seemed to know that consumers were claiming as much as double their income and getting away with it because nobody checked with the IRS. Now we have reports that credit card defaults are rampant too. The big banks are in fine shape (Citicorp, Wells Fargo, etc.) but locals are going to fold. So what happens? Well back in the S&L crises third parties came in and bought loan packages for as little as fifteen cents on the dollar, AND MADE A KILLING. The entire practice of leverage has to be changed so that there is transparency; who will invest in a firm that has 95% of a property leveraged? But not to fear, media whores like Schumer and Clinton will insert "our" government into the mix and nothing will change. As we look more and more it is becomming clear that nobody anywhere knew what they were doing. The loans to consumers were called “liar loans” because all seemed to know that consumers were claiming as much as double their income and getting away with it because nobody checked with the IRS. Now we have reports that credit card defaults are rampant too. The big banks are in fine shape (Citicorp, Wells Fargo, etc.) but locals are going to fold. So what happens? Well back in the S&L crises third parties came in and bought loan packages for as little as fifteen cents on the dollar, AND MADE A KILLING. The entire practice of leverage has to be changed so that there is transparency; who will invest in a firm that has 95% of a property leveraged? But not to fear, media whores like Schumer and Clinton will insert “our” government into the mix and nothing will change.

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