I finally get the irony in the US mortgage market:
1: Here is a low/no doc loan; cheers! 2: easy repayments (until reset) 3: sell the loans into a CDO scheme 4: GS, JPM etc sell them for a fee 5: GS, JPM etc short the CDO schemes as reset time comes along 6: Crash in housing market as resets start to take hold 7: 1 in 4 homes in US are 'underwater' right now; owe more than their worth. 8: GS, JPM etc shame mortgage holders to keep their word and repay regardless 9: what's left will soon be worth less 10: GS, JPM etc with their mark to fantasy accounting need the remaining mortgage holders to keep paying, 11: ???
Basically the banks created it, sold it, shorted it, profited big time (largest profits in history right on the back of near collapse - get real) and now expect the strugglers to prop them up?
