The Subprime Shuffle
Lance on Feb 15 2008 at 3:45 pm | Filed under: Economics, Lance's Page
Courtesy of Barry Ritholtz, we get a look at some black humor being passed around on the trading desks of Wall Street:
Go here to see the whole slideshow.
I would have more humor about this if I didn’t just get some bad news.
My new house has a leak in the roof, and an air conditioner that likely needs to be replaced. No big deal, that is what the home warranty I purchased is for!
Except I call today wondering why no one has gotten back to me on coming out and fixing these issues, and I get a message saying they have suspended operations.
My suspicion, just like everyone else in any business insuring any aspect of housing, they were taking on risk, taking the money from the premiums in return, and then packaging the risk for the reinsurance market. Unfortunately nobody will reinsure it anymore. Without the reinsurance they have to carry the risk on their books, which they don’t have the capital to do. Or some similar derivation.
Only a suspicion, but I’ll find out more soon. So no, I don’t apologize for the language in the slideshow.
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The slide show was pretty good, but I laughed harder at this video.
You are right, I saw that earlier, but it is still funny. I actually meant to post it at Risk and Return, but it took a bit longer to get it up and running than I expected and then forgot. Thanks for reminding me, I’ll put it up this weekend.
I just saw that this morning and posted it at our site. I wish I had known you had it up over here, first… I have to admit that I check our blogroll in alphabetical order, so you guys get screwed and I sometimes miss things for a couple of days.
Sorry to hear about the issues you are currently having - there are times when I really hate my house and the financial drain it is on our family. Those times would be every waking moment, really. Good luck with the insurance company.
Nothing says you have to credit us, especially since I took it from Barry. He will send you a lot more traffic for linking to him than I can anyway. I saw it this morning at your place when I wandered over there (I was busy loading up my new feedreader and was putting your feed in when I saw it.) I expect it will pop up all over the place.
As for the alphabetical order, start us at A rather than S and we are at the top of your list;^)
Ouch that sucks. Now I don’t feel so bad when the water heater sprung a leak the day we took possession of our current house.
I considered putting the “A” in there on our blogroll, but I’ve decided instead to simply go in reverse alpha order on even calendar days. Everybody wins.
Heh, well it was worth a stab. By the way, I linked to your post on the stimulus package over at Risk and Return.