In a stealth partial privatization, the U.S. Department of Housing and Urban Development (HUD) farmed out its mandate of working with single family homeowners in trouble on their mortgages to the industry most responsible for separating people from their savings and creating an unprecedented wealth gap that renders millions unable to pay those mortgages.
What Pam is referring to here is…
In this case, from 2002 to 2005, HUD transferred in excess of $2.4 billion of defaulted mortgages insured by its sibling, the FHA, into the hands of Citigroup, Lehman Brothers and Bear Stearns while providing the firms with wide latitude to foreclose, restructure or sell off in bundles to investors.
In other words, this "organization" took in the defaulted notes on property (homes) and then did with it whatever they wanted.
But wait a second – who wrote that paper in the first place? "All roads lead to Lehman", when it comes to subprime, remember? (Incidentally, that’s a big part of why they blew up!)
The ugly, however, is here:
What the program effectively did was allow the biggest retail banks in the country to get accelerated payment on their defaulted, FHA-insured, single family mortgage loans while allowing another set of the biggest investment banks to make huge profits in fees for bundling and selling off the loans as securitizations. Once the loans were securitized (sold off to investors) they were no longer the problem of HUD or the Wall Street bankers. The loans conveniently disappeared from the radar screen and the balance sheet.
Uh, except for one problem – was it disclosed to the buyers that these loans were previously defaulted? Hmmmmm…. not really sure. See, those notes have to be performing to securitize them, but Pam does raise the question as to whether the source of these notes was reasonably disclosed to buyers. Note sales can be profitable for someone, the question is whether everyone buying knows what they’re getting - in this case there’s a dubious "homeowner" who has already demonstrated inability to pay on the end of…
The Minister for Immigration Affairs himself, repeatedly stated that 50% to 70% of migratory flows to Greece were illegal migrants and the rest were refugees. The illegal migrants come from 77 different countries.
If it is a "racist crime" for a citizen to express accurately the percentages of refugees and illegal migrants entering the country, what will...
By SG Value Investor. Originally published at ValueWalk.
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What is the Greater Fool Theory?
The Greater Fool Theory is when the price of a good is not determined by its intrinsic value, but rather by irrational beliefs and expectations of market participants. Essentially, it is about buying a good at a price then offloading it to the next fool at a higher pr...
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When one looks back over the past 10-years and compares the performance of Banks to the broad markets, banks look broken. We shared with members last week that since the highs in 2007, banks have under performed the S&P 500 by nearly 77%. Is this under performance about to end?
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Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer. One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."
Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.
Genetic components are the DNA sequences that are 'inherited.' Some of these genes are stronger than others in their expression (e.g., eye color). Yet, some genes turn on or off due to external factors (environmental), and it is und...
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Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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