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Bailout 11: Why these CDOs could be worth nothing

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Uploaded by on Oct 1, 2008

Why a CDO could be worth nothing even though they are "collateralized".

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  • The CDO's are not illiquid assets like many banks say they are, they have value but the current market value for most of them is below what the banks want to sell them at. The banks are being very greedy and not selling them at a reasonable price, but don't worry Geithner's new plan will make the taxpayers overpay for the CDO's so the banks will be happy.

  • Good video. Looks like the banks are stuck with the paper under the dog. Its a shame we elected politicians who like to eat it.

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  • Hey, I write my sevens like that too. ;) Great vids!

  • I'm 63 and find these videos instructive! Great site. How about doing a series on economics? Supply-side: pros and cons?

  • 9:21 "I write my sevens like a European, I think it makes me [sic] sound more... well... anyway." Lol, you already sound smart I guess you just want to look the part too. Thanks for these informative vids, I never thought I would be able to understand the crisis so comprehensively.

  • I'm not au fait with all of these derivative contracts etc but I think I understand the concept of shorting an asset (i.e. borrow shares from their owner for a fee and sell them hoping to repurchase them later at a lower price), so if you forsee a real housing market crash, a depression proper, could you borrow the safest tranche, sell it to someone for 100 cents on the dollar (or close to it) and buy it back for next to nothing if say there's a 90% default rate?

  • HENSE THE BANKS SAY LETS GO AFTER AIG ABK AND MBIA.

    SUE THEM FOR THE MONEY, they charged a premium,

    SUE them, the court says though,

    CANT sue them we are going to give them a settlement,

    HE HE HE

  • youre right that Geithner is a two faced sneaky little fuckin cunt face.

  • they dont want to say it. Their closets are full of dead bodies

  • No real world data on the foreclosure rate.

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