U.S. plan for housing financing: dumb foreigners

Goldman Sachs does it again

According to the Washington Post, the government’s plan for withdrawing from financing the entire mortgage market is to lure back foreign sovereign funds to replace U.S. taxpayer money. So if I understand it, Goldman Sachs and the like will go out and collect mortgages, assemble them in packages, rate them all as Triple AAAA safe, sell them to the foreigners while assiduously selling them short on the other side of the deal, laughing all the way to bonus day.

This may lack originality but maybe there are a ton of Charlie Browns out there. Our government’s  banking on it.

1 Comment

Filed under Uncategorized

One response to “U.S. plan for housing financing: dumb foreigners

  1. Anonymous

    IQ arbitrage has persisted for decades in global financial mkts: there is a role for Chinese, Japs, Eurotrash, Aye-rabs, etc in globalization and inefficient markets