Following yesterday’s cartoon take (via Bloomie) on the SubPrime issue, today we see a different graphic approach — comic-like nonetheless — from the free section of the WSJ:

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click for larger ‘toon

Mortgage_machine

Via WSJ

The following chart can give you an idea as to how much in CDOs are out there:

Subprime Market Contracts
Infomachine

Sources:
How Wall Street Stoked The Mortgage Meltdown
Lehman and Others Transformed the Market For Riskiest Borrowers
MICHAEL HUDSON
WSJ, June 27, 2007; Page A1
http://online.wsj.com/article/SB118288752469648903.html

Bonds Becoming a Tougher Sale
Investors Finally Balk At Prices for Risky Debt; New Rules for LBOs
TOM LAURICELLA and SERENA NG
WSJ, June 27, 2007; Page C1
http://online.wsj.com/article/SB118291541531649694.html

Category: Derivatives, Fixed Income/Interest Rates, Hedge Funds, Psychology

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “Fun with Subprime Debt”

  1. Jason says:

    For dead-on humor on the topic, the best I’ve seen so far is from Tim Price, CIO of Union Bancaire Privee on his blog.

    “Lake Tahoe Housewife to Blame”
    http://thepriceofeverything.typepad.com/the_price_of_everything/2007/06/junk-debt-crisi.html

  2. TexasHippie says:

    First picture link is broken?

    ~~~

    BR: Seems to be fine now

  3. HARM says:

    Barry,

    Fyi: The first graphic (“Follow the mortgage”) displays ok on the main page, but the link (to display full size) is still broken.

  4. Pool Shark says:

    Great link Jason!

    “Substandard & Poors” Indeed.

  5. I commented on this same issue today. I call it a “(sub)Prime Example of Greed…”

    Essentially, the diagram from WSJ (shown in Barry’s post) shows what I would call a “cycle of greed.”

    Thanks……

  6. P. K. says:

    Jason–great link! I’m not sure what was funnier, the firm called Toxique Funding of Pasadena, or the zero coupon perpetual bonds bought for a retirement fund.