Thread: economist blames wall street for collapse
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bpuharic bpuharic is offline
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Default economist blames wall street for collapse
On Sun, 09 May 2010 11:28:09 -0400, wrote:

On Sun, 09 May 2010 06:37:02 -0400, bpuharic wrote:


you right wingers...dont even know how the stock market works...

No actually even if 10% of the people who owned a particular stock
tried to sell it all at once the stock would lose more than that much
value immediately.

Wall street prices are just the illusion of money.

really? ever sell any stock?


CDOs are not stock in the first place.

who said they were? again you dont know how the market operates.
people buy stock in companies that trade CDO's. when the CDO's come
due and cant be paid, they're trash...just like the stock in the
companies trading them

They are not collateralized
instruments and do not require any money to be escrowed when they are
created. It is simply a computer generated entity that gets traded
like it was actually worth something. As we found out with AIG, there
was no actual money behind them.

and AIG was a publicly held company with stock. it dealt in CDO's.

how'd that work out for AIG and its shareholders....and the taxpayer?

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