The music has stopped and Wall Street has no chair.

[formercia]

Carnage on Wall Street as loans go bad
By Steve Schifferes
Economics reporter, BBC News, New York


SUB-PRIME CRISIS SERIES
Foreclosures are spreading to areas like Los Angeles, depressing prices
The scale of the losses that will hit Wall Street banks could approach half a trillion dollars as large numbers of sub-prime home loans go bad.

And the carnage in the financial markets could cause a credit squeeze that will dampen economic growth for years to come.

The US sub-prime crisis is leading to a wave of foreclosures across the US that is having a devastating effect on the US housing market, and is likely to lead to the halving of the US economic growth rate in the next six months.

--snip--
But since 9 August, bondholders have effectively gone on strike, refusing to buy some $2.8 trillion worth of sub-prime, Alt-A, and other types of securities not guaranteed by government-sponsored agencies.

--snip--


And they thought Junior was going to bring Heaven on Earth.....

[ixion]

1. and, much like the rest of neocon logic... Heaven on Earth for neocons is hell

for everyone else. :grr:

[1932]

2. I doubt it. I'm sure they expected this. Boom and bust is the favorite get rich strategy of right

Orderly, slow growth the reduces risk for average people doesn't shift enough guaranteed wealth to the wealthy.

[ixion]

3. oh, they most defintitely expected it...

that's why it's their version of Heaven, and our version of hell.

[formercia]

4. Here's how the scam works:

Here's how the boys make a killing on the falling market. As an example of how the deal is done, I will use Oppenheimer Holdings as an example:

http://www.opco.com/public/about_oppenheimer/careers.html

Oppenheimer provides a full range of financial services to high net worth individuals, families, corporate executives, businesses and institutions. With over 80 offices throughout the United States and South America, Oppenheimer has a unique combination of local presence and national resources that enables its Financial Advisors to provide attentive service and tailored solutions to each client.

If you would like to learn more about a Financial Advisor position at Oppenheimer, or if you've seen our ad in the Wall Street Journal and would like to learn more, please submit this form and someone will contact you shortly.

If you are looking to inquire about other positions at Oppenheimer, and have experience in the Financial Services industry, click here for Experienced Hires.

They are hiring because this is where the money to be made is.

To keep track of their activities, bookmark this page:

http://www.topix.com/com/opy

Note this article:

http://www.topix.com/com/opy/2007/11/reuters-canada-business-summary-2

Reuters Canada Business Summary

Canada's CIBC said on Sunday it would sell a major part of its U.S. capital markets business to Oppenheimer Holdings Inc as it focuses on its core operations.

Oppenheimer buys the paper which is secured by real property for probably 20 cents on the dollar while the bank shareholders get to eat the write off.

See how the scam works?

[formercia]

6. Expected or engineered?

There is nothing illegal about someone taking advantage of the distress of others, buying their assets a a steep discount and making a profit.

If there was any arrangement between the entities holding the paper and the entities that purchased the paper at a discount such that the share holders did not receive fair return from the sale...

Selling paper belonging to shareholders and converting them to private assets such that officers of the seller or other insiders received compensation from the buyer or their account holders.

[formercia]

5. Buy when blood flows in the streets.

Urban Renewal, the best deal in town.

[formercia]

7. After all, the boys are the only ones that count.

The rest of us are nothing but serfs in their eyes. We're just a crop to harvest when we have built up enough equity to make it worth their while.

[redqueen]

8. Yup.

That sounds a lot more like realistic than the "there's no spillover effect" stuff I read here yesterday.

[formercia]

9. This is what the boys did to the Jews for Centuries.

Let them build up some wealth, then have a Pogrom or two as an excuse to seize their property and run them out of town, or worse.