Mortgage mess TV
I’ve been getting a lot of good feedback about my post yesterday on the way in which just about every major investment bank in the world might have huge legal risk surrounding the way that they built their mortgage bonds. The stock market in general might be relatively sanguine about the mortgage mess, but bank stocks are falling, and I suspect that the worst is yet to come. Certainly the tail risk to the banking industry as a whole is as high as it’s been since TARP was first unveiled.
In any case, if the post was a bit tl;dnr for your tastes, here’s a jerky video version, complete with libel-conscious bleepage. You’ve heard of the foreclosure mess. Here’s a mortgage-bond mess to layer on top: