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You're supposing that the shitpile is still generating cash-flows. This is increasingly untrue and will get worse.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Wed Sep 24th, 2008 at 09:34:55 AM EST
[ Parent ]
Primary market mortgages originated, then securitized as if asset, are no longer generating sufficient income to pay huge classes of (CMO) investors --PLUS-- corporate bonds which may or may not be dependent on the same unearned income to pay interest and retire debt (averting default) and capital gain from securities available for sale (MTM assets) on the balance sheet.

Diversity is the key to economic and political evolution.
by Cat on Wed Sep 24th, 2008 at 02:01:22 PM EST
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