Following yesterday’s cartoon take (via Bloomie) on the SubPrime issue, today we see a different graphic approach — comic-like nonetheless — from the free section of the WSJ:
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click for larger ‘toon
Via WSJ
The following chart can give you an idea as to how much in CDOs are out there:
Sources:
How Wall Street Stoked The Mortgage Meltdown
Lehman and Others Transformed the Market For Riskiest Borrowers
MICHAEL HUDSON
WSJ, June 27, 2007; Page A1
http://online.wsj.com/article/SB118288752469648903.html
Bonds Becoming a Tougher Sale
Investors Finally Balk At Prices for Risky Debt; New Rules for LBOs
TOM LAURICELLA and SERENA NG
WSJ, June 27, 2007; Page C1
http://online.wsj.com/article/SB118291541531649694.html
For dead-on humor on the topic, the best I’ve seen so far is from Tim Price, CIO of Union Bancaire Privee on his blog.
“Lake Tahoe Housewife to Blame”
http://thepriceofeverything.typepad.com/the_price_of_everything/2007/06/junk-debt-crisi.html
First picture link is broken?
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BR: Seems to be fine now
Barry,
Fyi: The first graphic (“Follow the mortgage”) displays ok on the main page, but the link (to display full size) is still broken.
Great link Jason!
“Substandard & Poors” Indeed.
I commented on this same issue today. I call it a “(sub)Prime Example of Greed…”
Essentially, the diagram from WSJ (shown in Barry’s post) shows what I would call a “cycle of greed.”
Thanks……
Jason–great link! I’m not sure what was funnier, the firm called Toxique Funding of Pasadena, or the zero coupon perpetual bonds bought for a retirement fund.