Friday, November 19, 2010

WE Should Be So Lucky

I always start the day with Atrios, who mainly covers economic news.  Boy, his blog was depressing today, featuring a number of stories about mortgage crookedness by banks.  But none of it hit me as hard as this item:

"Ambac Assurance, whose parent company filed for bankruptcy earlier this month, said Thursday that banks that assembled a dozen poor performing mortgage bonds that it insured must pay for some of those losses.

Ambac said it was reviewing loans in residential mortgage-backed securities (RMBS) issued by the Countrywide unit of Bank of America [and affiliates of Citigroup among others.

The company may be riding the growing momentum of mortgage "putbacks" - forcing banks to buy back mortgage securities - driven by Pacific Investment Management and other big investors.

Those investors have forged alliances to fight banks they claim shoveled faulty loans into mortgage bonds."

Boy, don't you wish that, if you made a stupid investment, you could force the person you bought it from to pay you back?  That's the rule for insurance companies, apparently.  Maybe all those people who got conned by their banks into buying houses they couldn't afford should try the same thing.  But then, I guess the rule is different for people that can afford to give millions to the Republicans to get them to do what they want.

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