Subprime's Lure Fatal for Wachovia, National City

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  dowalker110/28/08 Report as spam
  1

  RE: Subprime's Lure Fatal for Wachovia, National City

  What you fail to point out is unregulated hedge funds shorted the hell out of ABX Index used to mark to market under GAAP. Per Bank of International Settlements up to 60% of the value loss comes from Bearish trading code for massive shorting of the 22 CDS that made up the ABX Index. JP Paulson and George Soros among others made 3.7B and 3Billion personally from this activity. It was a flaw in GAAP accounting that aided this trading strategy to hurt so many. These institutions being regulated had no chance once the GAAP BV went below statutory captial requirements. See willian Isaac x FDIC Chairman who sums up the flaw in GAAP mark to market that toasted these banks thanks to big hedge funds that could get away with murder. They bought insurance CDS and Puts and than burnt the houses or asset classes down. THey know it.

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  licksboogers05/10/09 Report as spam
  2

  RE: Subprime's Lure Fatal for Wachovia, National City

  This isnt the entire reason for the fall of those indexes. If the
  underlying assets the indexes were based off of performed as
  the ratings agencies had made everyone believe they would,
  then regardless of the shorting activity the index would have
  performed. Theres shorting interest on most stocks in the
  market which doesnt mean every one of them is going to
  crash. The hedge funds shorting cant be blamed for the fall in
  the market. Their purpose is to make money and just because
  they arent as dumb as the mutual funds who hold the stocks
  as they crash to 0 doesnt mean they are criminal. Ratings
  agencies are more criminal, collecting huge fees to rate the
  securities, then happily giving them AAA ratings while the
  underlying asset or highly leveraged position didnt warrant it.
  But thanks for playing walkerdo, somewhere your mom is
  crying over how stupid you are.