bloomberg.com:
July 8 (Bloomberg) -- Morgan Stanley plans to repackage a downgraded collateralized debt obligation backed by leveraged loans into new securities with AAA ratings in the first transaction of its kind, said two people familiar with the sale.
Morgan Stanley: Summary | OpenSecrets
Collateralized debt obligation - Wikipedia, the free encyclopedia
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Who better to package the junk than Morgan Stanley?
Articles I'd much rather see on the front page:
Iran Security Moves To Crush New Protests
http://www.nytimes.com/2009/07/10/world/middleeast/10iran.html?ref=global-home
Fewer than expected file for unemployment
http://money.cnn.com/2009/07/09/news/economy/initial_claims/?postversion=2009070909
Sotomayor tough on white-collar criminals
http://www.google.com/hostednews/ap/article/ALeqM5gQN_YcghxG5TCHtUeLCEOrrHnf3gD99AVC080
Afghan blast takes 25, Mostly chi ldren
http://in.reuters.com/article/southAsiaNews/idINIndia-40927920090709
Afghan blast takes 25, Mostly chi ldren is a headline I hope to never see again.
sorrowfully agree
Perhaps I should have said, up for discussion, rather than see.
To ChiGuy: re - "Articles I'd much rather see on the front page:"
You may be right, however since Money, aka our Financial Systems effects and affects all the other topics you listed, hang in there, hold those thoughts, our collective (and individual too) Brains are capable of handling it all....
As for our thoughts on this piece ~
We thought Huff was writing a Travel-ler beware piece, referring to the garbage strike in Toronto, Canada, now in its 3rd week.... Having seen other travel pictures warning about 'piles of garbage'!!!!
Some one at Huff has a nice sense of humour, eh....
Now that I've had a few minutes to calm down it occurred to me that the wealthy were hurt by the economy too.
Can you imagine how all those multi-millionaires must feel as they realized that they may never become multi-billionaires?
Seems like it is well past time for Obama to clean house. When Holder going to indict and jail these Wall street clowns?
it is time to get rid of the Treasury Secretary, Chief Economic Advisor, and federal reserve chairman who are propping these leeches up on the backs of workers. The time is now to get rid of the Sachs apologists and hire some sheriffs to monitor Wall Street.
I wholeheartedly agree!
I think no one has suffered more from PTSD (post traumatic scrub disorder) than I. Therefore, I'll be offering Reality-based, Rogerian, RET, and Gestalt classes at this time each day to assist those who need it. Please sign up below if you'd like to be a part of these sessions.
You know we've heard HOW the Bush administration and now the Obama administration have kept our country safe, well I would like to ask, who is keeping us safe from the financial terrorists. WHO?
Why all the debate about whether or not this is a "Christian nation"?
Is it not run according to the Golden Rule?:
Dem whats got the gold, makes the rules.
Good one!
Now if our Government has done their job, this bunch won't get away with it, if they have put the right regulations and regulators in charge we shouldn't see another mess like the first. If not, well some elected officals had better pack their bags.
Hey, don't buy the securities and the next time a bank wants a bailout let them go into bankruptcy and go through an orderly reorganization.
Banks don't go through bankruptcy.
Ever.
They are taken over by the FDIC and either sold or liquidated or a combination of the two.
What kind of fool would buy the stuff? And if they do they deserve all the downside they can get.
The ones who know they will get bailed out by us... because they will be deemed to big to fail.
There you have it!
New main, btw....and it s*ucks too
Already?
believe it or not, yes
Say, I almost forgot to tell you how much I loved how you were putting down some v*icious t*r0ll in the wee hours of the morning. I can't even remember the name but some of the comments were gems
They don't call em masters of the universe for nothin.
Can I repackage my downgraded credit rating to a top tier credit rating?
Stop scru_bbing, Hu_ffpo. Stop the p0lice state stuff or some of us are going to tell O'Reilly.
You vill post vat ve vant you to post!
Yes, and it can't be anything that would either expose the dishonesty of our headlines, a pattern with us, or constitute any kind of solution to a problem we want you you to think is beyond human ability to solve. We want you to be as sp00ked (uncomfortable) as possible during your time here. We want you @ngry and even in desp@ir. As in :beside yourself.
In a word, we want clicks.
Ah, so you have an ex on Hu.ff.y's staff also?
Not an ex but, at the very least, it is someone who either h@tes my gu_ts or is best friends with someone who does.
I tried to ask this before, and it was not deemed worthy for this grand board.
Now I'm just an old engineer who doesn't pretend to understand all these derivative variations, so I'm hoping we have a professional bond trader here who can help.
This looks to me like MS is taking an existing GW bond pool, currently rated below AAA, and splitting it into two new bond pools. One pool contains only the derivatives that still can be rated at AAA. The other is all the junk.
Is that basically it?
Yup ...
Its like taking a can of spam, separating the quality meat parts and the snout pigs tail and jowls.
Then repackaging the quality parts as grade "A" ham and the snout and other stuff as "potted" meat.
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First Posted: 07- 9-09 08:34 AM | Updated: 07- 9-09 08:38 AM