The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
In creating mortgage backed securities, the geniuses of the financial world didn't bother with pesky formalities like proper transfer of the note (the debt document). That wasn't a problem as long as people were paying their loans, but in the course of foreclosure proceedings it has become increasingly apparent that many of the foreclosing companies do not actually hold the note, and thus cannot foreclose - indeed, in many cases it seems to be impossible to legally establish who owns it; the fraud comes in because these companies started inventing paper to cover up the fact.
Now if the MBSs don't actually, legally hold the notes on which they are based, they are worth, in the worst case, about the price of a pair of stinky socks. (3 sentences!)
To my mind, the fraud business could well be simply the water-running-out phase of the tsunami cycle.
The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
On the other hand, there are so many potential points of failure to cover, many of which have significantly high MTBF that it is a tough proposition to cover everything adequately across the many spokes in the wheel.
Plus, if I was mister clever guy balancing the stores, I would know that there is also a high percentage of my replacement stock that is out of date a few minutes after unpacking it, undoubtedly the software/firmware and often the hardware itself.
I was just reading about some of the cool optical things coming out of Cisco for example, doubling the amount of data that can be delivered by polarizing (spinning) some streams of the photons, which can be kept separate of the original stream. That technology will only continue in the same way that the change in the way they built the magnetic bits of the hard disk has given us terabyte drives recently. Point is, I'm not going to over stock my back ups if I can get new cooler more efficient possibly cheaper stuff that swaps in just as well.
Anyway, just following a thought. I also have a 3G USB stick that gets me out of jams when they have an outage. I pay for a couple hours per month, and it goes months without use. One month they cut us off for nearly a week and I left the GSM on much of those days. They charged me up the wazoo, and we protested that they weren't delivering promised service and amazingly they gave us a credit. Score one for France Telecom.
Never underestimate their intelligence, always underestimate their knowledge.
Frank Delaney ~ Ireland
by Melanchthon - Aug 23 72 comments
by Migeru - Aug 24 14 comments
by Frank Schnittger - Aug 18 62 comments
by Frank Schnittger - Aug 6 123 comments
by ARGeezer - Aug 5 4 comments
by Frank Schnittger - Aug 3 19 comments
by gmoke - Aug 5
by Migeru - Aug 2414 comments
by Melanchthon - Aug 2372 comments
by Frank Schnittger - Aug 1862 comments
by Frank Schnittger - Aug 6123 comments
by gmoke - Aug 5
by ARGeezer - Aug 54 comments
by Frank Schnittger - Aug 319 comments