How SubPrime Really Works
Since its a slow Friday before a 3 day weekend, let's have some fun.
As the credit market has gone into the crapper over the past few weeks, gallows humor seems to have gotten the best of investors and traders. This hysterical piece of financial wit -- in Powerpoint no less -- has been circulating round Wall Street trading desks for a few days now.
I embedded it into Google apps and posted it on line so everyone can enjoy the warped sense of humor that accompanies losing $100s of billions of dollars.
Ain't Wall Street grand?!?
>
click to launch slide show
Friday, February 15, 2008 | 11:15 AM | Permalink
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» The Subprime Shuffle from A Second Hand Conjecture
Courtesy of Barry Ritholtz, we get a look at some black humor being passed around on the trading desks of Wall Street:
Go here to see the whole slideshow.
I would have more humor about this if I didnt just get some bad news.
My new house has a ... [Read More]
Tracked on Feb 15, 2008 4:47:57 PM
» How SubPrime Really Works from www.buzzflash.net
Fluctuations, My Good Man...a guide to the sub-prime mortgage crisis in slide show form. Don’t balk at the fact there are 45 slides. It’s worth it. Via Jim Henley. [Read More]
Tracked on Feb 17, 2008 4:27:55 PM
Comments
Absolutely Brilliant!
Posted by: cinefoz | Feb 15, 2008 11:25:09 AM
Fire equity withdrawl, FEW. I like the concept since most properties are over insured due to the demand of the lenders.Interseting way to solve the inventory problem.
The P&C insurers may be the next shoe to drop. Anyone know if Countryslide Mtg. self insures the homes they repo?
Posted by: Ross | Feb 15, 2008 11:25:55 AM
curse you websense!!
*shakes fist*
Posted by: Shnaps Parlor | Feb 15, 2008 11:39:03 AM
Damn, that was funny. I'm not sure if that means I'm a financial geek, or that potty words just make me laugh.
Posted by: Mr. Obvious | Feb 15, 2008 11:39:06 AM
If I didn't know better I'd say that was a script that was written before any of this took place.
Posted by: Bob A | Feb 15, 2008 11:47:31 AM
I didnt know if I should laugh or cry, until it came to the Czar of accounting "Blow me"
I both laughed and cried.
Posted by: tm | Feb 15, 2008 11:50:00 AM
Oh and they left out the part about "and we know real estate always goes up because POTUS always tells us things are good and the good people are now in control of the government."
Posted by: Bob A | Feb 15, 2008 11:50:25 AM
Translated to real life, I would hope that personal consequences of the most heinous type fall on the crap sellers who knew idiots would buy whatever they offered. Unemployment, jail, lawyers and lawsuits, and social degradation all need to be applied against these thieves and accommodating idiots.
To anyone who has hire and fire capabilities who is reading this ...
Do yourself a favor, make yourself feel good, and come home with something to brag about by firing one or more of the psychopaths who made you look so bad. They're laughing at you right now. Don't kid yourself. Throw some out, today.
If you happen to be a psychopath and are reading this, fire a co-conspirator today and use him or her as a scapegoat. At least one will be gone. That's better than none.
Posted by: cinefoz | Feb 15, 2008 11:51:49 AM
This is an ABOLUTE CLASSIC!!
It will be remembered in the findncial history!
Posted by: Sean | Feb 15, 2008 12:07:37 PM
A classic case of passing the fuck. Made my day.
Posted by: PLing | Feb 15, 2008 12:18:49 PM
Wow that was pretty much the same conversation I had with the assholes at IMB this morning.
Got a letter yesterday that basically said it's all my fault they they have no internal risk management controls and that If I wanted my 800 credit score, 200K plus in equity still in my home, spotless payment history $100k HELOC re-activated....all I would need to do is provide an appraisal that shows a higher value............OMG
Fuck Me....is that not how we got here in the first place?
Total assholes...but they are "sorry"
I knew it was coming so it wasn't a surprise. I have bullet proof credit and payment history and I get hit......responsible management of ones assets makes no difference now.
I also realize that this "suspension" has more to do with IMB than me.....however it paints a picture that all of us are suspect no mater what you look like financially.
Ciao
MS
Posted by: michael schumacher | Feb 15, 2008 12:34:33 PM
Bravo, Barry. Perhaps we can anticipate a sequel, along the lines of "I Can Haz Bailout Goverment Cheeze?" Lotsa choppers and wheelbarrows.
Posted by: johnny m | Feb 15, 2008 12:35:08 PM
TM is absolutely right.
The Czar of accounting: "Blow Me."
Posted by: Matt from Lincoln | Feb 15, 2008 12:40:28 PM
Closely related - here's a link to a great post by Jonathan Miller, who has a lot to say about how the change in focus from down payments to monthly payments has led a good number of homebuyers to be comfortable with the idea of walking away from their houses, even if they can work out new financing to stay in them.
Via this week's edition of On the Moneyed Midways - yes, that's a self-plug (what else are you going to read this weekend before Barry posts his weekend linkfest?)
Posted by: Ironman | Feb 15, 2008 12:41:27 PM
I wish more Powerpoint presentations were like this.
Posted by: Larry | Feb 15, 2008 12:43:49 PM
The only PPT I ever willingly went through more than once...the utter simplicity of it! Hilarious.
Posted by: dukeb | Feb 15, 2008 1:00:19 PM
And if the value is'nt high enough we will beat up the appraiser. If the appraiser give us a hard time we will find another that will hit the number we need. You see we pretend we are bankers but really we are mobsters right out of the 1930's
Posted by: Value Man | Feb 15, 2008 1:06:04 PM
Love it. Thanks Barry!
Posted by: lux | Feb 15, 2008 1:16:30 PM
Somehow I missed the joke? Perhaps the ending slide should have shown the Golden-Parachute Excutives together out on the golf course fucking each other? But of course they didn't get fucked; like always!
Posted by: JustinTheSkeptic | Feb 15, 2008 1:31:13 PM
I have to wonder why the market isn't selling off like crazy....I guess it is because it has been so long since really, really bad things happened in the market, or there really is a PPT... Say it aint so Joe, pleasezzzzzzzzzzz! These ruby shoes aren't taking me home anymore.
Posted by: JustinTheSkeptic | Feb 15, 2008 1:34:55 PM
You need a part 2, where the RSG people get in trouble and have various governments bail them out, further fucking over the Norwegian villagers and Kansas school boards.
Posted by: Tad Sketchy | Feb 15, 2008 1:59:48 PM
"Fuck you" says the Norwegian.
"Fuck you" says the RSG banker.
And there you have your liquidity trap. No trust, no liquidity.
Pushing on a string.
Posted by: Don | Feb 15, 2008 2:07:33 PM
Tad Sketchy, I've got the scene: Golden-Chute Excutives on golden golf green, with rows and rows of people bent over to take it up the ass. The peopel would of course have different signs identifying who they are, and then finally the last one in line would read: "Mom."
Posted by: JustinTheSkeptic | Feb 15, 2008 2:19:36 PM
No matter how bad the situation is, how bad the people think, there is no selling today. Hehe, the bull wins!
Posted by: Ben | Feb 15, 2008 2:24:03 PM
Barry,
Homeowners aren't the only ones walking away according to this FT article from yesterday. Seems the lawyers are now advising "the leading banks that it would be cheaper to walk away from big buyout deals than incur further losses on their funding commitments, increasing the chances that more high-profile private equity transactions will collapse. . ."
http://www.ft.com/cms/s/0/5becb572-db30-11dc-9fdd-0000779fd2ac.htm
Posted by: Strasser | Feb 15, 2008 2:31:43 PM
