Nice thread. Check out the “Shorting WaMu” thread, which has similar concerns about neg-am loans.
The big banks, like Citibank, and the Federal Reserve member banks (who are *they*?) were too smart for this gig. They offloaded their mortgages to the MBS market, so Federated and WaMu can go under/get bailed out, but the truly rich in this country won’t lose a penny. They just profit off the ignorant and poor.
Since you are a whiz at reading 10-Qs, what do you think about the exposure of the banks like Citibank, JP Morgan to mortgages? Won’t they just get richer when this housing market collapses, because they’ll buy up banks and real estate for pennies on the dollar in 2010-2015?
