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Great post Elaine. You really captured the hysterical essence of it all. And another dot connected. Given the U.S. prison population is busy lifting weights and doing real estate deals, now I understand why there are so many houses sitting vacant. Hardest part is finding a lawyer who handles both homicide defense and real estate closings.

Elaine Meinel Supkis

And the lawyer has to be a public defender, to boot! But again, look at the US attorney general. Maybe he can do real estate deals behind bars. Both kinds of bars.


This mortgage backed security scheme is one of the oldest scams known to humans. It originated in an entirely different area of human endeaver, however. Go to any butcher shop and explain the idea of tranches and repackaging and they will show no sign of surprise. This is old hat to them.

Sausage. No matter how you slice it, it's still bologna.

Once upon a time, someone got the idea of mixing meat scraps that no one wanted to buy in with premium ground beef to sell as sausage. At first, no one noticed. It still tasted like sausage, so the butchers started adding more and more "scraps" and "leftovers" to their sausage and sold it for the same price as real beef. They made a killing doing this.

But then they got careless. People started to notice something was not right with their sausage. Diners became sick and dropped dead. The sausage spoiled faster, smelled funny, and tasted really bad. People began to demand to know what was in the sausage. Once they discovered that the butchers had mixed in livers, stomachs, eyeballs, brains, endless fat, bonemeal, intestines (large and small), ears, noses, bowels, testicles, and anuses, they were outraged and no longer bought any sausage -- not even the good kind.

At the height of the scam, some sausages consisted of 100% meat scraps (i.e. no meat at all).

This is what they have done with mortgages. They mixed rank mortgages with good ones and sold the package for the same price as if the whole thing consisted of prime mortgages.

There really is nothing new under the sun.


now you tell me. been calling that stuff chorizo and eating it most of my life, now I find out I was eating the pork version of subprime mortgages.


Sorry Al!

In all truth, the correlation between this latest scam and the older one had just occurred to me.

However, that being said, due take note that not all sausages are... ahem... adulterated(?). The same goes for mortgages. Those that are prime taste mighty good (to bankers at least).

Some exotic ones become delicacies -- like "Blutwurst", for example, which I once had the obligation of eating in front of a German family beaming with pride. (This is where lots of German "Altbier" helps alot).

But woe to the butcher who adds pork brains or cow ears to the pure congealed blood and fat that make up a perfect Blutwurst.

Now that prime mortgages are all or mostly all contaminated, we are seeing the awful consequences of greed and dishonesty.

Elaine Meinel Supkis

Good one, DeVaul. Time to eat some hot dogs. (Blech)

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