This blog is courtesy of our family and is about how Forrest explains mortgage backed securities. Read closely because it applies to Detroit too.
Mortgage Backed Securities are like boxes of chocolates.
Criminals on Wall Street stole a few chocolates from the boxes and replaced them with brown rocks in plain sight of some dishonest politicians in Washington. Their criminal buddies at Standard & Poor rated these boxes AAA Investment Grade Chocolates. The boxes were then sold all over the world to chocolate investors. Eventually the average taxpayer bites into one of the rocks and discovers the crime. Suddenly nobody trusts American chocolates anymore anywhere in the world.
Hank Paulson now wants the American taxpayers to buy up and hold all these boxes of rock-infested chocolates for $750 billion dollars until the market for rocks returns to normal. Meanwhile the Wall Street criminals and banks who stole all the good chocolates are not being investigated, arrested, or indicted.
Why? Because Congress had Freddy Mac and Fannie Mae manufacture the rocks in the first place.
Mama always said: 'Sniff the chocolates first, Forrest'.
Forrest is smarter than 99% of all the politicians.
Lemon cars are a lot like that. Simple parts that work are replaced with complex computer controlled parts that are programmed wrong or don't work after a short time. And then they go to Washington, hat in hand, asking for a bailout. Lemon cars stink. And the companies that make them stink too and someone ought to make manufacturers take them back and give us back our money. Someone does. Us. It's what we've been doing since 1978. Why? Because life is too short to put with with a lemon, or a rocky box of chocolates.
Burdge Law Office
Squashing lemons for 30 years.