Subprime Mortgage Bonds Getting AAA Rating S&P Denies to U.S. Treasuries

[Byakuya]

http://www.blooraberg.com/news/print/2011-08-31/subprime-mortgage-bonRAB-getting-aaa-rating-s-p-denies-to-u-s-treasuries.html

 

[JBerry]

obamanomics is working

 

[First Born of Suckels]

;

 

[hcl118]

S&P has it out for Obama, and hates black people

 

[miss p]

teal deer

 

[big_swinns]

Wow.

 

[The Candyman]

Its probably a fair rating for those particular securities. The subprimes being written now are adequately collateralized.

 

[Ellie]

i don't know what the fuck half of that meant

 

[hustle swag]

us treasuries are low-yield

instruments created from subprime mortgages are not

 

[texas2sweetie]

what does yield have to do with anything?

 

[Chloe K]

did you read the first line?

 

[Lady Nephilim]

the only reason s&p rates them aaa, is because they are getting paid to do so. and any fools who buy these bonRAB deserve what they get.

 

[Umm Zekiya]

So what?

DTI requirements and income verification are stringent (meaning the homeowners can actually afford to make the payments) and the loans are adequately collateralized.

 

[cfoster001]

are you for real? mediocre credit and no equity means these people can easily walk away from their loan.

 

[Jinuine J]

and do you honestly believe most wont default in the next 30 years?

 

[serena.]

subprimes more reliable and economically sound than our own fed.


ain't life grand?

 

[azirontoticon]

So what? As long as the loans are adequately collateralized defaults aren't that big of a deal. And why would they want to walk away if they can afford to make the stroke and aren't upside down?



I can guarantee that most won't.

 

[Rich F]

This is really an argument that sub-prime bonRAB should be downgraded, not that US treasuries should be upgraded.

 

[Six Samurai]

guess what the best performing loans are? VA loans with no down-payment requirement and eligible down to a 620 credit score

 

[Nikolce S]

because they get their paycheck from the government