Bob Chapman on the Mortgage Crisis - The Banks are Bankrupt

Bob Chapman on the MortgageGate

Bob Chapman on Mortgage Cisis- The Banks are Bankrup


Bob Chapman wrote in the international forcastyer of the 13th October 2010 : ".....Little or nothing was done about derivatives and that is where the trouble also lies, as well as in structured assets based upon corporate and Treasury debt. These are being sold to retail clients based on higher yields, which also involves subprime debt and auction rate securities. You would think these fools would have learnt something after watching the terrible losses of the past few years. Obviously not, they are determined to lose their investments. That brings us back to our old adage, never, ever, ever chase a yield, it can only end in losses. Worse yet, there are no real after markets in these securities. You are at the mercy of the seller. Another problem is that the regulators do not even know this is going on. That is understandable. If you file a formal complaint concerning naked short selling they are abusive and ignore you. This follows the arrogance of the Fed and the SEC to listen to warnings from the financial communities that subprime mortgages; ABS, MBS and CDOs were toxic bombs about to explode. They as well refused to look into the legalistics of the mortgages, the packaging of the bonds and the obvious phony rating systems proffered by S&P, Fitch and Moody’s. Worse yet, they have for the past few years been guaranteeing the mortgages via Fannie Mae, Freddie Mac, Ginnie Mae and FHA that started the problems in the first place.:...to read more click here >>>>