STOP SCREAMING ABOUT SUBPRIME

I wrote a post about the loss of jobs due to the subprime collapse and was pleased to see it featured.  I had written about this problem a few weeks before the mainstream press picked up on it because I have contacts at both securities firms (from a former life) and sub-prime lenders (from my existing life).

Some good comments followed along with a request from my buddy Carole Cohen about WHO was really going to LOSE from the collapse of the subprime mortgage market.  Laurie Manny and I discussed this tonight and she convinced me to go public with my theory.

Let me tell you a story about how the subprime mortgage market collapsed and millions of baby boomers had to accept less money in retirement.  If you liked the Da Vinci Code, you’re gonna love this one.  It’s not wrapped up in sex, or murder, or corruption,  just good-old fashioned “pass the buck” and “what the little guy doesn’t know won’t hurt him” attitudes.

WARNING:  If you are prone to believe conspiracy theories, you are going to curse, kick the cat, and be extremely pissed off after you finish reading this.

Here is the dirty little secret of the mortgage securitization boom of the last 5-10 years:

CLICK HERE FOR THE SECRET (opens in a new window) 

You'll get a good history lesson and hopefully a little laugh.