[quote=davelj][quote=Rt.66]
“Debt can no longer be sold as an “asset”. It’s that simple.”
[/quote]
What is this supposed to mean? One entity’s debt is another entity’s asset. That’s an accounting tautology. Now, if it were reworded to say, “Most debt is trading below its par value and there will be plenty of losses on these assets,” well then that makes sense. Or perhaps, “It’s much harder to sell debt today on the same terms as a few years back,” that makes sense as well. But I can tell you that there is plenty of debt being sold out there every day, even in this environment.
But, “Debt can no longer be sold as an asset”? That’s patently absurd. I’m curious as to who managed to get themselves quoted saying that.[/quote]
Umm….are you suggesting there IS a market for the Mortgage Backed Securities, Commercial Securities, Consumer Credit Securities, etc?
I heard somewhere the market froze up and they were selling for $0.05 on the dollar and there was some historic emergency and something about bailouts and printing presses.
Iceland would love to hear from you if you have some buyers lined up.
I think they were trying to make poignant statement and not stating that is the case in every circumstance today. Three years ago any kind of debt could be package up and sold to Italian retirees and English pension funds. That has changed enough to justify the statement, I think.
