Quote:
Originally Posted by ToothSayer
Of course it was obvious. All you had to do was actually understand what you were buying - it was inevitable that interest-repayment-only loans to people with the worst credit put into tranches with other people with the same horrible "subprime" credit who couldn't afford it would go belly up.
It's not like some great predictive ability was needed. Anyone with moderate intelligence who actually read what they were buying knew it was inevitable subprimes would crash.
Read this and educate yourself rather than holding forth on stuff you don't understand.
TLDR. I work in FI, I don't need read some random med student's biography to know what was happening back then. Did some people make money shorting the market at that time? Sure. But there's always random cucks shorting the market and permabears talking about how bad things "really" are.
I'll give you credit that you're not a permabear, so if you any posts dating back then, I'll be happy to read them.
My point is that it wasn't obvious that these were bad securities until 2007 when **** hit the fan. For example today, no one seriously considers auto loans to be a bad product, but the lending standards in autos is probably worse. When you have booming house prices, default risk is mitigated. People have the option to refi if they need to. In addition, if you own a senior bond, 80% of the losses are first going to other investors before they ever touch you. If anything, prepayment is larger risk than defaults. And if you owned FN/FH MBS, you are guaranteed against losses, and FN/FH are implicitly guaranteed by US government.
Quote:
Originally Posted by ToothSayer
I'm sorry you missed out on a lot of easy money. Sucks being you I guess.
How can anyone else make money when you're already there soaking in all 25 and 50 baggers?