The
folks on Wall Street are very good at inventing new types of
investments for the short term, and they also have short-term
memories. Thus, they are now considering the idea of buying up
foreclosed residences, renting them out, and packaging those rents
which they will then translate into securities.
Sound very much as the creation of subprime debt securities?
Except that these are even more problematical. The management of rental properties is far more complex than is servicing mortgages. Risks can be greater and much tougher for credit agencies to decipher. But some folks, particularly the young hotshots on Wall Street, never do learn basics. (See the Earl J. Weinreb NewsHole® comments.)
Sound very much as the creation of subprime debt securities?
Except that these are even more problematical. The management of rental properties is far more complex than is servicing mortgages. Risks can be greater and much tougher for credit agencies to decipher. But some folks, particularly the young hotshots on Wall Street, never do learn basics. (See the Earl J. Weinreb NewsHole® comments.)
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