Sharing is Living

Ho ho ho! LOL. This comic is the funniest thing. I saw it from one of the readers emails at jsmineset.com. If you’re still confused about the whole subprime debacle, this comic will clear it up. Thank you to whoever made this! (Update: This was created by Ernest Hancock, the original is here)

We know these:

1. Mortgage brokers didn’t care about originating good loans, because they’ll sell those loans off to others, and still get fat commission checks.
2. Borrowers didn’t really think when they made that loan. They thought they should get a house then before prices go up even further to an unreachable point. They knew they can’t really afford payments but banked on the theory that they could refinance later, because house prices were supposed to go up.
3. Banks who bought those loans lied, saying those subprime loans were actually good loans.
4. The ratings agency backed the lies by rating those junk mortgages as AAA.
5. The general market bought the scam and really thought AAA junk mortgages are really AAA securities.

Now that borrowers couldn’t pay because they couldn’t afford those mortgages in the first place, the house of cards is collapsing. And here were are, facing the reality, that junk securites, will always be junk securities. No matter how they package them.

Live and learn! For those who touted this as a loss, I say: “How can you lose something that was never there?”. $80 million subprime mortgages has never been worth $500 mils (Oops sorry, not mils, but Bills - billions). So in a way, we’re waking up to the reality, where as before we were dreaming.

Still, this blows!

Read this gem now! Will take you only 10 mins, and you’ll end up smarter =)

Coolest comic, ever.