Fun with Subprime Debt

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

Mortgage_machine

Via WSJ

The following chart can give you an idea as to how much in CDOs are out there:

Subprime Market Contracts
Infomachine

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

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What's been said:

Discussions found on the web:
  1. TexasHippie commented on Jun 27

    First picture link is broken?

    ~~~

    BR: Seems to be fine now

  2. HARM commented on Jun 27

    Barry,

    Fyi: The first graphic (“Follow the mortgage”) displays ok on the main page, but the link (to display full size) is still broken.

  3. Pool Shark commented on Jun 27

    Great link Jason!

    “Substandard & Poors” Indeed.

  4. The Financial Philosopher commented on Jun 27

    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……

  5. P. K. commented on Jun 27

    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.

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