Goldman Sachs positive on subprime


By Call it Crazy   Follow   Sat, 1 Dec 2012, 4:06pm   351 views   4 comments
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Woo Hoo.... time to bring back NINJA and Liar loans!!!! Let the bubble repeat itself!!
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http://www.housingwire.com/content/bloomberg-goldman-sachs-positive-subprime-now

Right before the housing crisis, Goldman Sachs Group bet against subprime mortgages to spare the company major pain. But now the firm is promoting the opposite path with housing indicators starting to improve, according to a new Bloomberg news article.

Writers Heather Perlberg and Jody Shenn report that Goldman Sachs is encouraging clients to focus on the subprime ABX index.

Apparently with home prices on the rise and mortgage rates low, the investment bank is going the opposite direction from 2008 and suggesting investments tied to housing.

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  1. mell


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    1   4:21pm Sat 1 Dec 2012   Share   Quote   Permalink   Like   Dislike (1)  

    It doesn't matter to the squid as they always win and they got rid of a lot of competitors during the bubble, those that were not big enough to fail. Time to rinse and repeat and keep throwing the muppets/peasant serfs under the bus. Life is great at the top!

  2. EastCoastBubbleBoy


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    2   5:08pm Sat 1 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    The question is not what they are telling their clients... what are they doing themselves? Do they see this as a short term wave that they can ride for a quarter or two, or are they banking *pun intended* on a long term trend upwards?

  3. Call it Crazy


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    3   5:16pm Sat 1 Dec 2012   Share   Quote   Permalink   Like   Dislike (1)  

    EastCoastBubbleBoy says

    Do they see this as a short term wave that they can ride for a quarter or two, or are they banking *pun intended* on a long term trend upwards?

    I think they see it as a no lose situation. Since they borrow at the Feds ZIRP, they can make sub prime loans all day at +4%......

    Then they get to sell those notes back as MBS as part of the $40 Billion Fed program each month, off loading all these "marginal" loans.

    It's a winning program for the squid!!!

  4. bmwman91


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    4   8:53pm Sat 1 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    Call it Crazy says

    Let the bubble repeat itself!!

    No no no.

    THE SPICE MUST FLOW!!!!!!!

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