Reader OldVet on developments relating to the sub-prime mortgage problem.
Proudly Presenting: One of The Nation’s 21 Primary Broker Dealers
Anyone wonder why I was a little cranky about the Federal Reserve splashing out short term loans to its coterie of 21 primary broker/dealers lately? Here an example of one of these anointed few, talking hyped-up nonsense on television:
1. On March 21, 2007 Morgan Stanley’s CFO David Sidwell went on CNN Money with the message that his firm’s exposure to sub-prime mortgages was minimal, and would cause no damage to the firm. Shares of Morgan Stanley (up $3.16 to $79.27) jumped 4 percent in midday trading. Morgan Stanley: No Subprime Hit
2. On March 23, 2007, Morgan Stanley puts on a fire sale of the sub-prime mortgages it took as collateral from floundering lender New Century: “Morgan Stanley is in the process of holding an auction for $2.48 billion in mortgages from subprime lender New Century…It announced the sale of the 13,200 loans in a small public auction notice in a print ad Friday [Mar. 23]… A Morgan spokeswoman declined to comment.
Morgan’s New Century Fire Sale by Roddy Boyd, The New York Post Mar. 26 2007
Do you really and truly believe Morgan Stanley is dumping those mortgages because they’re a good investment for somebody else and not for themselves? Ha. All the banks are on the hook for bad loans, across the board, in my opinion, and lying about it.
Question: Are the robbers on the outside of America ’s banks looking in, or inside looking out?