Is this true? If so, we are in for a lot worse than I thought. Watch!

[yy4me]

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x203700

Poster earlier by some DUer but got lost in the shuffle.

[snappyturtle]

1. There are several of us, vmaus, your, TexasExplorer and me and

it's like no one is listening!!! Thanks for posting.

More of the videos at: www.fedupusa.com

[Subdivisions]

5. I'm beginning to suspect someone has gotten an ultimatum...

Either fix this now or no more loans for the United States. In which case, we are being lied to.

[snappyturtle]

8. Yep and yep. nt

[avaistheone1]

2. Hartmann was something along the same lines today. That this bailout money will be going

to Saudi Arabia, London, China etc.



...but in sending this money to those countries is it to cover for bad debts Wall Street can't pay back to them? or did Wall Street sell these toxic tranches to those countries and now their pissed and want their money back?

[Subdivisions]

6. I think they want their money back...or else! n/t

[anigbrowl]

3. No. They guy's interpretation is back-assward.

He has interpreted to mean mortgages securities backed by real estate in those countries. What Sherman meant was US-originated mortgage securities held by investors overseas.

Say I am Large Bank of Texas. I issued mortgages for 1000 homes and farms in Texas to a bunch of no-accoutns with bad credit, and I didn't even bother to run proper credit checks on them. Then I took those mortgages and created a security which matures as those mortgages are paid off. I sold that security on the open market and it was bought by Tea-Drinking British Bank of London for, say, $1 billion. That means that TDBBL put a billion dollars into the US economy in good faith.

I've got the money back and TDBBL is left holding the bag for my lack of due diligence. As the treasury is now offering (maybe) to take ownership these assets, TDBBL would like to be able to sell it to the treasury. Bear in mind that lots of US banks also hold securities backed by assets in other countries.

[4 t 4]

4. that doesn't work either because

supposedly 95% is due to credit default swamps. Do foreign bank also trade those swaps ?

[MsLeopard]

7. K&R

I heard Thom Hartmann talking about this today too. We're being hosed and no one can stop it. I sent the link to everyone in my address book. It needs to go viral, and fast.