Article Image
News Link • MEDIA BLOG REFERENCES

Neil, What Are You Really Saying in Plain English by Neil Garfield

• http://livinglies.wordpress.com/2013/12/28/neil-wh
So let me try to explain the mortgage monstrosity in short plain statements. Based upon my analysis of information in the public domain, there are two ways that anyone claim a loan was securitized — carved up into pieces and then sold to multiple buyers or bundled with other loans. Either way — carving or bundling is meant to decrease risk. If one loan goes bad it is only a small part of the entire portfolio of loans you bought so the perception of risk is reduced.

1 Comments in Response to

Comment by Ed Price
Entered on:

From the article: "Either way, it is the money of investors that is used and therefore they are the only ones paying value for the loan."

This is not entirely true. Thoroughly read "Two Faces of Debt - http://freedom-school.com/two_faces_of_debt.pdf - originally published by the Federal reserve Bank of Chicago, and "Modern Money Mechanics" - http://www.rayservers.com/images/ModernMoneyMechanics.pdf - also originally published by the Federal reserve Bank of Chicago, and you will see that word "debt" take on a whole new meaning as it is transformed into "creation of new funds."
 


Join us on our Social Networks:

 

Share this page with your friends on your favorite social network:


Purse.IO Save on All Amazon Purchases