HowardSugar Coating the Sh@t in Mortgage Collapse
February 16th 2007 01:58
Verizon's Jobs, Virtual reality?
Like the LTCM Hedge fund collapse, the rating agencies aren't going to tell you anything about the mortgage collapse, until it is too late.
[source: Feb. 9 {TheStreet.com}]
AS WITH THE 1998 LTCM CRISIS, THE MAJOR RATING AGENCIES ARE NOW COVERING UP FOR THE PROBLEMS OF THE SUBPRIME MORTGAGE MARKET. In 1998, the three major, British-controlled rating agencies--Fitch, Moody's, and Standard & Poor's--refused to
downgrade LTCM's rating, until after LTCM had exploded in September. Now, they are at it again. They have duplicitously refused to downgrade much of the subprime mortgage market
financial paper, which is worthless. Case in point: A 13-month-old, mortgage-backed security pool, by the name of MABS 2006-FRE1, has 9% of the mortgages in the pool in foreclosure; a
further 10.5% of the mortgages in delinquency (60 days or more behind in payment); and 3.5% repossessed by the banks. In short, 23% of the loans are known to be dysfunctional. Yet, neither Fitch nor S&P has downgraded the pool, an act that they have
repeated numerous times.
[
| 34 |
| Vote |
Add To: 
subscribe to this blog