{"id":2455,"date":"2008-09-27T17:28:20","date_gmt":"2008-09-27T22:28:20","guid":{"rendered":"http:\/\/1boringoldman.com\/?p=2455"},"modified":"2008-09-27T21:04:51","modified_gmt":"2008-09-28T02:04:51","slug":"show-me-the-money","status":"publish","type":"post","link":"https:\/\/1boringoldman.com\/index.php\/2008\/09\/27\/show-me-the-money\/","title":{"rendered":"movie wisdom…"},"content":{"rendered":"
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Earlier in the year, I sold my third of my old office condominium to my younger partners who are still practicing there, and we owner financed it. This week, we got this letter [dated before the mortgage crisis], offering to buy my partner’s mortgage. The Company is in Michigan. While I’ve never gotten such a letter before, had it not been for the recent events, I doubt that my wife [and money manager] would’ve have shown it to me.<\/p>\n

I suppose that Mortgage Companies try to buy up owner financed loans for some fraction of their face value in order to reap the long termed interest plus a piece for assuming the risk. At least, that’s what I would’ve thought before I started reading about the roots of our current financial pickle. These last eight years, that’s just the start of things. The loan, instead of staying in Michigan, apparently then becomes a "commodity" to be traded like soy beans, pork bellies, and onion futures on some market somewhere. But then, it becomes something that’s [sort of] insured, and the insurance becomes a "commodity" to be traded as something called a credit default swap<\/strong><\/font> on yet another market.<\/p>\n

All of this is apparently possible because of deregulation<\/strong><\/font> via:<\/div>\n