Time Magazine didn't get the memo!

[freelance]

Let Risk-Taking Financial Institutions Fail

Let Risk-Taking Financial Institutions Fail
By Ari J. Officer and Lawrence H. Officer Monday, Sep. 29, 2008

The Administration and Congress have felt compelled to do something about the "financial meltdown," so an inefficient and inequitable "bailout plan" has been rushed through the legislature despite harsh criticism from the right and left. That's unfortunate. Both presidential candidates were stalling by qualifying the plan. Whichever candidate had had the courage to reject outright this proposal would have had the better claim to be President.

Do not be fooled. The $700 billion (ultimately $1 trillion or more) bailout is not predominantly for mortgages and homeowners. Instead, the bailout is for mortgage-backed securities. In fact, some versions of these instruments are imaginary derivatives. These claims overlap on the same types of mortgages. Many financial institutions wrote claims over the same mortgages, and these are the majority of claims that have "gone bad."

snip

http://www.time.com/time/business/article/0,8599,1845209,00.html

Either that, or Time got a conscience. Nah, they just didn't get the memo in time.

 

[acptulsa]

There's a third possibility. They could just be the first to realize that the b.s. isn't working, and by trying to shove it down our throats they would just be destroying their own already raggedy reputation.

 

[Mister Grieves]

I think the MSM just draws straws once a week to see who's turn it is to actually tell the truth.

 

[tpreitzel]

I think the MSM just draws straws once a week to see who's turn it is to actually tell the truth.

 

[BeFranklin]

Let Risk-Taking Financial Institutions Fail

Do not be fooled. The $700 billion (ultimately $1 trillion or more) bailout is not predominantly for mortgages and homeowners. Instead, the bailout is for mortgage-backed securities. In fact, some versions of these instruments are imaginary derivatives. These claims overlap on the same types of mortgages. Many financial institutions wrote claims over the same mortgages, and these are the majority of claims that have "gone bad."

http://www.time.com/time/business/article/0,8599,1845209,00.html
.

This is important, and a good source. The problem is sometimes being spun as massive bad mortgages. This isn't the problem. The problem is they created (inflated) a bunch of financial instruments on top of the smaller sub-prime mortgages, and then took credit swaps and insurance on top of that. its like an inverse pyramid scheme.