Forrest Gump Explains Mortgage Backed SecuritiesSubmitted by SIERRAHPBT on Fri, 01/02/2009 - 17:18
Forrest Gump Explains Mortgage Backed Securities
Mortgage Backed Securities are like boxes of chocolates.
- Criminals on Wall Street stole a few chocolates from the boxes and replaced them with turds.
- Their criminal buddies at Standard & Poor rated these boxes AAA Investment Grade chocolates.
- These boxes were then sold all over the world to investors.
- Eventually somebody bites into a turd and discovers the crime.
- Suddenly nobody trusts American chocolates anymore worldwide.
- Hank Paulson now wants the American taxpayers to buy up and hold all these boxes of turd-infested chocolates for $700 billion dollars until the market for turds returns to normal.
- Mama always said: "Sniff the chocolates first Forrest".