tag:blogger.com,1999:blog-20938562.post6161713467591108848..comments2023-10-26T12:51:00.347-04:00Comments on FutureModern: Apocalypse NowGeorgehttp://www.blogger.com/profile/13759499295301691764noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-20938562.post-79147598874142702792008-10-31T10:42:00.000-04:002008-10-31T10:42:00.000-04:00There are good loans and bad loans, most lenders k...There are good loans and bad loans, most lenders know they will have a certain number of loans default and set aside a certain amount of money in reserve to account for this.<BR/><BR/>Bundling loans = bundle ten loans of similar quality together and divide by ten. The new bundled loan now represents 1/10 of the bundle elements so that if one loan defaults the loss is 10% not 100% (in theory)<BR/>Georgehttps://www.blogger.com/profile/13759499295301691764noreply@blogger.comtag:blogger.com,1999:blog-20938562.post-87920088877796395432008-10-31T03:52:00.000-04:002008-10-31T03:52:00.000-04:00Zipthwung, it's really not very difficult to under...Zipthwung, it's really not very difficult to understand what is going on, when you know this:<BR/><BR/>"U.S. banks getting more than $163 billion from the Treasury Department for new lending are on pace to pay more than half of that sum to their shareholders, with government permission, over the next three years.<BR/>The government said it was giving banks more money so they could make more loansHanshttps://www.blogger.com/profile/06081946944668235348noreply@blogger.comtag:blogger.com,1999:blog-20938562.post-50357202243257567332008-10-31T03:34:00.000-04:002008-10-31T03:34:00.000-04:00back in 2007 when everyone (harpers and you for in...back in 2007 when everyone (harpers and you for instance) was all, "subprime's looking a bit bumpy," you said there were measures to be taken, and I didn;t pay attention, really - though I now have a small amount in a mutual fund (and I cashed some in at the wrong time, though not much) <BR/><BR/>I;m hoping this dealio wont last past feb, it will all come roaring back to like 12000 n the Fotune zipthwunghttps://www.blogger.com/profile/02761727194113640578noreply@blogger.comtag:blogger.com,1999:blog-20938562.post-74716125169168278032008-09-21T16:32:00.000-04:002008-09-21T16:32:00.000-04:00Most people fail to realize that most investments ...Most people fail to realize that most investments are a form of gambling, risk taking. So I won't argue that point.<BR/><BR/>Derivatives have a function in modern finance. They allow one party to moderate the risk on their side of the investment. When the price of oil goes up, it was the producers who sold for future delivery as the prices rose. It was the users who bought in order to maintain Georgehttps://www.blogger.com/profile/13759499295301691764noreply@blogger.comtag:blogger.com,1999:blog-20938562.post-23017755898161555192008-09-21T15:03:00.000-04:002008-09-21T15:03:00.000-04:00"“The point everyone misses,” wrote economist Robe..."“The point everyone misses,” wrote economist Robert Chapman a decade ago, “is that buying derivatives is not investing. It is gambling, insurance and high stakes bookmaking. Derivatives create nothing.”1 They not only create nothing, but they serve to enrich non-producers at the expense of the people who do create real goods and services. In congressional hearings in the early 1990s, Hanshttps://www.blogger.com/profile/06081946944668235348noreply@blogger.com