I'm sure many of you have heard that the bailout failed (for the time being at least). This is the best vote that the senate has done all year! However, I sadly doubt that it's gone for good
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I agree that that article is mostly right. One small caveat on his facts. Many of those mortgage backed securities are actually not all that bad. The problem is that sub-prime mortgages have been sliced up so many times it is nearly impossible to tell the good securities from the bad ones. Thus any security with sub-prime mortgages are being declared toxic even if only 10% of the security is bust. These ARE merely illiquid at the moment. Of course, as the writer said, part of the reason they are illiquid is because of the possibility of a bailout.
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