Subprime Mortgage Bonds Quotes

They had stumbled either upon a serious flaw in modern financial markets or into a great gambling run. Characteristically, they were not sure which it was. As Charlie pointed out, It's really hard to know when you're lucky and when you're smart. ~ Michael Lewis

When the Goldman Sachs saleswoman called Mike Burry and told him that her firm would be happy to sell him credit default swaps in $100 million chunks, Burry guessed, rightly, that Goldman wasn't ultimately on the other side of his bets. Goldman would never be so stupid as to make huge naked bets that millions of insolvent Americans would repay their home loans. He didn't know who, or why, or how much, but he knew that some giant corporate entity with a triple-A rating was out there selling credit default swaps on subprime mortgage bonds. Only a triple-A-rated corporation could assume such risk, no money down, and no questions asked. Burry was right about this, too, but it would be three years before he knew it. The party on the other side of his bet against subprime mortgage bonds was the triple-A-rated insurance company AIG - American International Group, Inc. ~ Michael Lewis

The Germans made just about every bad investment you could have made. They invested in Icelandic banks. They invested in Greek government bonds. They were heavy into Irish banks, big into Irish banks, and they bought U.S. subprime mortgage bonds. ~ Michael Lewis

default swaps on subprime mortgage bonds. Only a triple-A-rated corporation could assume such risk, no money down, and no questions asked. Burry was right about this, too, but it would be three years before he knew it. The party on the other side of his bet against subprime mortgage bonds was the triple-A-rated insurance company AIG - American International Group, Inc. Or, rather, a unit of AIG called AIG FP. AIG Financial Products was created ~ Michael Lewis

The "consumer loan" piles that Wall Street firms, led by Goldman Sachs, asked AIG FP to insure went from being 2 percent subprime mortgages to being 95 percent subprime mortgages. In a matter of months, AIG FP, in effect, bought $50 billion in triple-B-rated subprime mortgage bonds by insuring them against default. ~ Michael Lewis

That eerie hissing you hear may well be the air beginning to seep out of the green energy bubble. The sound is similar to the pfffffft and sshhhhsssssp noises we heard in the early days of the dot-com bubble collapse or the subprime mortgage meltdown. ~ Terence Corcoran

It was Greenspan who through some excessive deregulation prepared the monetary ground for the rise of the subprime mortgage companies: a lending market that specialises in high-risk mortgages and loans.
'Innovation', said Greenspan in April 2005, 'has brought about a multitude of new products, such as subprime loans and niche credit programs for immigrants'.
It is almost touching to find out that Greenspan cares so much about immigrants. ~ Gilad Atzmon

What the mortgage bubble was all about was big banks like Goldman Sachs taking big bundles of subprime mortgages that were lent out largely to low-income, highly risky borrowers, and applying this kind of magic-pixie-dust math to these bundles of securities and slapping AAA ratings on them. ~ Matt Taibbi

Everywhere the crisis of the private financial system has been transformed into a tale of slovenly and overweening government that perpetuates and is perpetuated by a dependent and demanding population ... For about ten days the crisis was interpreted as a consequence of the ineptitude of the highly paid, and then it transmogrified into a grudge against the populace at large. ~ Marilynne Robinson

University administrators are the equivalent of subprime mortgage brokers selling you a story that you should go into debt massively, that it's not a consumption decision, it's an investment decision. Actually, no, it's a bad consumption decision. Most colleges are four-year parties. ~ Peter Thiel

Then resold their loans in bulk to Wall Street banks. The banks, in turn, bundled the loans into high-yielding residential mortgage-backed securities (RMBS) and sold them on to investors around the world, all eager for a few hundredths of a percentage point more return on their capital. Repackaged as collateralized debt obligations (CDOs), these subprime securities could be transformed from risky loans to flaky borrowers into triple-A rated investment-grade securities. ~ Niall Ferguson

The same system that once gave us subprime mortgage collateralized debt obligations no investor could possibly truly understand now gave us stock market trades that occurred at fractions of a penny at unsafe speeds using order types that no investor could possibly truly understand. ~ Michael Lewis

Incredibly, at this critical juncture in financial history, after which so much changed so quickly, the only constraint in the subprime mortgage market was a shortage of people willing to bet against it. ~ Michael Lewis

Unpleasant odor wafting from the subprime mortgage industry that Eisman had detected. These companies disclosed their ever-growing earnings, but not much else. One of the many items they failed to disclose was the delinquency rate of the home loans they were making. ~ Michael Lewis

Long Beach Savings was the first existing bank to adopt what was called the "originate and sell" model. This proved such a hit - Wall Street would buy your loans, even if you would not! - that a new company, called B&C mortgage, was founded to do nothing but originate and sell. ~ Michael Lewis

The creation of the mortgage bond market, a decade earlier, had extended Wall Street into a place it had never before been: the debts of ordinary Americans. ~ Michael Lewis

This completed the curious reversal in roles that occurred in the early 1980s, when thrifts became traders and traders thrifts. ~ Michael Lewis

The people in a position to resolve the financial crisis were, of course, the very same people who had failed to foresee it: Treasury Secretary Henry Paulson, future Treasury Secretary Timothy Geithner, Fed Chairman Ben Bernanke, Goldman Sachs CEO Lloyd Blankfein, Morgan Stanley CEO John Mack, Citigroup CEO Vikram Pandit, and so on. A few Wall Street CEOs had been fired for their roles in the subprime mortgage catastrophe, but most remained in their jobs, and they, of all people, became important characters operating behind the closed doors, trying to figure out what to do next. With them were a handful of government officials - the same government officials who should have known a lot more about what Wall Street firms were doing, back when they were doing it. All shared a distinction: They had proven far less capable of grasping basic truths in the heart of the U.S. financial system than a one-eyed money manager with Asperger's syndrome. ~ Michael Lewis

Best definition of "investing" is "gambling with the odds in your favor." The people on the short side of the subprime mortgage market had gambled with the odds in their favor. The people on the other side - the entire financial system, essentially - had gambled with the odds against them. ~ Michael Lewis

Mortgage securities. Pooled together from thousands of mortgages around the United States, these bonds are issued by agencies like the Federal National Mortgage Association ("Fannie Mae") or the Government National Mortgage Association ("Ginnie Mae"). However, they are not backed by the U.S. Treasury, so they sell at higher yields to reflect their greater risk. Mortgage bonds generally underperform when interest rates fall and bomb when rates rise. (Over the long run, those swings tend to even out and the higher average yields pay off.) Good mortgage-bond funds are available from Vanguard, Fidelity, and Pimco. But if a broker ever tries to sell you an individual mortgage bond or "CMO," tell him you are late for an appointment with your proctologist. ~ Benjamin Graham

For though there was no chance of persuading a pension fund manager looking to make a longer-term loan to buy a Freddie Mac bond that could evaporate tomorrow, one could easily sell him the third tranche of a CMO. ~ Michael Lewis

It is ludicrous to believe that asset bubbles can only be recognized in hindsight," he wrote. "There are specific identifiers that are entirely recognizable during the bubble's inflation. One hallmark of mania is the rapid rise in the incidence and complexity of fraud ... . The FBI reports mortgage-related fraud is up fivefold since 2000." Bad behavior was no longer on the fringes of an otherwise sound economy; it was its central feature. ~ Michael Lewis

The sudden introduction of these magic mortgage bonds into the marketplace pushed most every major institutional investor in the world to suddenly become consumed with the desire to lend money to American home borrowers, even if they didn't know to whom exactly they were lending or how exactly these borrowers were qualifying for their home loans. As a result of this lunatic process, houses in middle- and lower-income neighborhoods from Fresno to the Jersey Shore became jammed full of new home borrowers, millions and millions of them, who in many cases were not equal to the task of making their monthly payments. The situation was tenable so long as housing prices kept rising and these teeming new populations of home borrowers could keep their heads above water, selling or refinancing their way out of trouble if need be. But the instant the arrow began tilting downward, this rapidly expanding death-balloon of phony real estate value inevitably had to - and did - explode. ~ Matt Taibbi

Only someone who has Asperger's would read a subprime mortgage bond prospectus, ~ Michael Lewis

In the subprime mortgage industry, bankers handed out iffy loans like candy at a parade because such loans meant revenue and, hence, bonuses for executives in the here-and-now. ~ Thomas Frank

Hypothesis: Brothers and sisters forge family bonds through a complex byplay of accusations and insults. ~ Gordon Korman

Remember the Tea Party movement didn't get started in September of 2008 when the bank bailout was passed. It really began on Feb. 19th, 2009 when a television commentator named Rick Santelli stood up and said what the hell are we doing bailing out people who couldn't afford a mortgage by taking money from people like me who are prudent? ~ Karl Rove

We live in a world where we don't see the ramifications of what we do to others because we don't live with them. It would be a whole lot harder for an investment banker to rip off people with subprime mortgages if he actually had to live with the people he was ripping off.
If we could see one another's pain and empathize with one another, it would never be worth it to us to commit the crimes in the first place. ~ Trevor Noah

A rentier is an investor whose relationship to a company or enterprise is strictly limited to the ownership of financial wealth (such as stocks or bonds) and the receipt of income on that wealth (such as dividends or interest). The financial system performs dismally at its advertised task, that of efficiently directing society's savings towards their optimal investment pursuits. The system is stupefyingly expensive, gives terrible signals for the allocation of capital, and has surprisingly little to do with real investment. ~ Doug Henwood

I know it's not strictly sex that accounts for my straying the motive usually attributed to men. I think it's just too tempting to have two lives rather than one. Some people think that too much travel begets infidelity: Separation and opportunity test the bonds of love. I think it's more likely that people who hate to make choices to settle on one thing or another are attracted to travel. Travel doesn't beget a double life. The appeal of the double life begets travel. ~ Elisabeth Eaves

Lastly, those are not at all to be tolerated who deny the being of a God. Promises, covenants, and oaths, which are the bonds of human society, can have no hold upon an atheist. The taking away of God, though but even in thought, dissolves all; besides also, those that by their atheism undermine and destroy all religion, can have no pretence of religion whereupon to challenge the privilege of a toleration. As for other practical opinions, though not absolutely free from all error, if they do not tend to establish domination over others, or civil impunity to the Church in which they are taught, there can be no reason why they should not be tolerated. ~ John Locke

The main practical difficulty, with some at least of the Peace-makers, is how to carry themselves toward the undoers of peace, the disuniters of souls. Perhaps the most potent of these are not those powers of the church visible who care for canon and dogma more than for truth, and for the church more than for Christ; who take uniformity for unity; who strain at a gnat and swallow a camel, nor knowing what spirit they are of; such men, I say, are perhaps neither the most active nor the most potent force working for the disintegration of the body of Christ.
I imagine also that neither are the party-liars of politics the worst foes to divine unity, ungenerous, and often knowingly falseas they are t their opponents, to whom they seem to have no desire to be honest and fair.
I think rather, they must be the babbling lairs of the social circle, and the faithless brothers and unloving sisters of disunited human families.
But why inquire?
Every self-assertion, every form of self-seeking however small or poor, world-noble or grotesque, is a separating and scattering force. And these forces are multitudinous, these points of radial repulsion are innumerable, because of the prevailing passion of mean souls to seem great, and feel important.
…the partisan of self will sometimes gnaw asunder the most precious of bonds, poisen whole broods of infant loves.
Such real schismatics go about, where not inventing evil, yet rejoicing in iniquity; mishearing; misrepre ~ George MacDonald

Maybe you'll take the cash out. So a credit card company or a bank that goes into the business of saying we're going to be the broker, we're going to sell you a mortgage that you're going to be able to pay off, we're going to help you reduce your credit card debt, we're going to help you save for retirement, we're going to put you into mutual funds that have low fees rather than high fees. ~ Richard Thaler

I stumble across the sea of tarmac, finding pavement, concealment and a brick wall. Palms brace against the scrubby surface. My stomach churns and then bubbles over, burning my throat as acrid yellow acid spills from my lips in frothy discomposure. It splatters the pavement like a spray of blood. ~ Rebecca Clare Smith

Break through the bonds of your past. ~ Tony Robbins

Ah, much deluded! lay aside
Thy threats, and anger misapplied!
Art not afraid with sounds like these
To offend, where thou canst not appease?
Death is not (wherefore dream'st thou thus?)
The son of night and Erebus:
Not was of fell Erynnis born
On gulfs where Chaos rules forlorn.
But sent from God, his presence leaves,
To gather home his ripen'd sheaves,
To call encumber'd souls away
From fleshly bonds to boundless day,
(As when the winged hours excited,
And summon forth the morning light)
And each to convoy to her place
Before the Eternal Father's face. ~ John Milton

When growth is slower-than-expected, stocks go down. When inflation is higher-than-expected, bonds go down. When inflation is lower-than-expected, bonds go up. ~ Ray Dalio

We know
The wheel of time moves on
New bonds, new ties ignite
Moments fleet, memories drift, shadows glide
There is always a hope
At the horizon we seek. ~ Balroop Singh

We were taking out mortgages we couldn't afford because they were camouflaged to look as if we had a reasonable chance of paying them back. Banks then changed the bankruptcy laws so that we could not get out of our obligations once the rates changed. Lastly, they sold us back our own mortgages, shifting back to us any of the risk through our money-market accounts and pension funds. ~ Douglas Rushkoff

As my intimacy with his family grew, I became part of the world which he sought to escape; I became one of the bonds which held him. ~ Evelyn Waugh

United Nations should be like a caring mother having many children. Its role is to grow trust and respect among the siblings with strong emotional bonds. ~ Amit Ray

Asking himself how this had happened and what could be done about it, Peter came to understand that the roots of Western technological achievement lay in the freeing of men's minds. He grasped that it had been the Renaissance and the Reformation, neither of which had ever come to Russia, which had broken the bonds of the medieval church and created an environment where independent philosophical and scientific inquiry as well as wide-ranging commercial enterprise could flourish. He knew that these bonds of religious orthodoxy still existed in Russia, reinforced by peasant folkways and traditions which had endured for centuries. Grimly, Peter resolved to break these bonds on his return. ~ Robert K. Massie

Freedom, sir," I began unceremoniously, without greeting or inquiry, "freedom is the biggest thing for man. Nothing can be compared to it - nothing at all!" Surprised at my outburst, my master looked up at me in silence. "One can understand nothing from books," I went on. "We read in the scriptures that our desires are bonds, fettering us as well as others. But such words, by themselves, are so empty. It is only when we get to the point of letting the bird out of its cage that we can realize how free the bird has set us. Whatever we cage, shackles us with desire whose bonds are stronger than those of iron chains. I tell you, sir, this is just what the world has failed to understand. They all seek to reform something outside themselves. But reform is wanted only in one's own desires, nowhere else, nowhere else! ~ Rabindranath Tagore

Bonds, as we saw in Chapter 2, are no more than promises by governments to pay interest and ultimately repay principal over a specified period of time. Either through default or through currency depreciation, many governments have failed to honour those promises. ~ Niall Ferguson

Attachment. A secure attachment is the ability to bond; to develop a secure and safe base; an unbreakable or perceivable inability to shatter to bond between primary parental caregiver(s) and child; a quest for familiarity; an unspoken language and knowledge that a caregiver will be a permanent fixture. ~ Asa Don Brown

We are acknowledging the close personal nature of our 10 years at war and the strong bonds of fidelity that Marines have for one another, especially for those fellow Marines who we have lost. ~ James F. Amos

Part of the irony of religion's role is that in strengthening micro bonds between individuals, religion contributes to within-group homogeneity, heightens isolation from different groups, and reduces the opportunity for the formation of macro bonds - bonds between groups - that serve to integrate a society. ~ Christian Smith

why the rating agencies weren't more critical of bonds underpinned by floating-rate subprime mortgages. Subprime borrowers tended to be one broken refrigerator away from default. Few, if any, should be running the risk of their interest payment spiking up. As most of these loans were structured, however, the homeowner would pay a fixed teaser rate of, say, 8 percent for the first two years, and then, at the start of the third year, the interest rate would skyrocket to, say, 12 percent, and thereafter it would float at permanently high levels. ~ Michael Lewis

The primary characteristics of the Shakespearean soul present themselves in Macbeth: the soul has free will, reason, conscience, and corporeality. The effect of these beliefs is holistic: they work together, whether a character be virtuous or sinful. More, no character stands alone morally, because Shakespeare assumes, theologically, that the bonds of family and society are sacred. With respect to the individual, however, there is one overarching principle at work. The fall of an individual's soul - the loss of his freedom, the ruin of his reason, the confusion of his conscience, the seduction of his flesh by lies and imagination - is a negation of his soul. ~ William Shakespeare

You see? That's the point. It's all a big guess. They hope, they pray, they cook and garden and get a better job to pay the mortgage and read dirty books to keep bedtime interesting, but they don't know. There are no guarantees. Sometimes you just stop loving someone. You just stop. ~ Tania Kindersley

Naturally, it causes psychological harm as well; it shouldn't surprise you that a national survey of 24,000 workers found that men and women with few social ties were two to three times more likely to suffer from major depression than people with strong social bonds.9 When we enjoy strong social support, on the other hand, we can accomplish impressive feats of resilience, and even extend the length of our lives. One study found that people who received emotional support during the six months after a heart attack were three times more likely to survive.10 Another found that participating in a breast cancer support group actually doubled women's life expectancy post surgery.11 In fact, researchers have found that social support has as much effect on life expectancy as smoking, high blood pressure, obesity, and regular physical activity.12 ~ Shawn Achor

Wicked, to be sure." He repeated the word as though tasting it, his gaze now following her finger's progress. "Perhaps you'd better punish me."


Good Lord, what next? "Punish you, indeed." She advanced her finger just to the base of his erection and stopped. "Suppose I were to walk out of this room and leave you here alone until you remembered your decency. Would that be punishment enough?"


He smiled as though he were teaching her chess and she'd just made a clever move. "Maybe." His eyes came to her face, and wandered in leisurely, thorough fashion down her body and back to her still finger. "Or maybe you ought to touch yourself. Pleasure yourself, and force me to watch."


"Now I know beyond question that you've confused me with someone else." Aplomb had company: his every shameless utterance was waking strange--or not so strange--sensations that spiraled from her core on out. "And I doubt you would take it as punishment, quite."


"Darling, I would take it as torture." Again he twisted against his bonds, so much power at her mercy. "Because you'd taunt me with it, wouldn't you? You'd place yourself where I could nearly reach you. And you'd say things to inflame me, but never touch me at all. I'd have to lie here helpless, watching you give yourself what you won't take from me." He sucked in a breath. "Start now, if you would. ~ Cecilia Grant