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The dodgy mortgage companies that wrote--knowingly wrote--the NINJA loans(No Job, No Assets, on the part of the borrower) were wholly owned subsidiaries of well-known "respectable" banks, who in turn owned the dodgy mortgage companies for the sole purpose of generating loans (they did not need to be good loans) that they could buy and repackage and as Collateralized Debt Obligations (CDOs) that they could then sell at top dollar as AAA quality securities to unsuspecting pension funds, Norwegian town governments, and the like.  

It worked.  

And this is documented.  It is not like there is anything to, you know, debate!  

Now, several years later, in the ensuing melt-down of value as the CDOs and other alphabet securities turn up bad, some of the smaller people decide to follow the lead of the big boys and walk out of their obligations.  

If their obligations were to the same big boys, well, that is just strategy and survival and I have no problem with that.  

Worrying about the wrongdoings of the little people is like worrying about carpenter ants in the woodwork--and people do!--forgetting that carpenter ants do not show up until after the wood is already rotted out and useless.  

The Fates are kind.

by Gaianne on Thu Aug 26th, 2010 at 12:30:53 AM EST

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