On Thu, 29 Apr 2010 21:10:49 -0700, Califbill
wrote:

On 4/29/2010 1:31 PM, bpuharic wrote:
On Thu, 29 Apr 2010 08:55:11 -0700, "Bill McKee"
wrote:



which, of course, is nonsense

CDO's were 1 trillion in 96

62 trillion in 2006.

tell me again how the middle class is responsible for that.


They bought houses that they could not afford to pay for.

and, given the fact that home ownership has run at about 65% for 40
years, the difference in the number of people who defaulted in2007 vs
1997 should have had a MINOR effect on our economy EXCEPT FOR:

hose CDO's
are a disaster,

this. the CDO's leveraged a MINOR problem into a MAJOR one. wall
street took a minor economic bump and found a way to amplify it so it
crashed the economy. we simply can not survive with 62 trillion
dollars worth of a useless financial instrument.

but wall street didn't care. they made billions. and they took it from
us. they took it from hard working, honest people.


but they were based on home loans. Bad home loans. If
the homeowners would have been able to pay the loans, the CDO's would be
covered from defaulting.

nope. the scale was too big. there is no way we can recover from the
trillions that wall street gambled on failure