Quote:
Originally Posted by TakuanSoho
No you don't. Main Street is not Wall Street Peach, treating them as the same is a sign of ignorance.
I am not belittling your personal financial experience. You probably do pretty well for yourself and can give pretty good advice in that arena. However, such experience ends with the individual. When you switch from Micro to Marco economics, your assumptions have to change.
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Ok, expert in global economics, riddle us this:
Why would any foreign entity, having been burned by US bankers and US brokers promising risk free investments because of hedges negating the risk, invest in any "innovative risk free" security sold by US bankers and US brokers?
If they don't use the cash from exporting to the US to buy such mortgage backed bonds, what will they buy with the cash?
And who will buy the bonds to make mortgages possible in the US?