Comments on: Public pension funds buy bottom of the barrel debt http://blownmortgage.com/2007/06/02/public-pension-funds-buy-bottom-of-the-barrel-debt/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Sat, 07 Nov 2009 02:53:18 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: Morgan Brown http://blownmortgage.com/2007/06/02/public-pension-funds-buy-bottom-of-the-barrel-debt/comment-page-1/#comment-240 Morgan Brown Tue, 05 Jun 2007 16:21:33 +0000 http://blownmortgage.dreamhosters.com/?p=364#comment-240 Hi Schahrzad - Yes they have billions under advisement but if they are buying on the advice of the salesmen how confident do you feel about the rest of that portfolio? Hi Schahrzad – Yes they have billions under advisement but if they are buying on the advice of the salesmen how confident do you feel about the rest of that portfolio?

]]> By: Morgan Brown http://blownmortgage.com/2007/06/02/public-pension-funds-buy-bottom-of-the-barrel-debt/comment-page-1/#comment-241 Morgan Brown Tue, 05 Jun 2007 16:20:37 +0000 http://blownmortgage.dreamhosters.com/?p=364#comment-241 WC - I think Tom's comment above just showed us what those kickbacks look like :) WC – I think Tom’s comment above just showed us what those kickbacks look like :)

]]> By: Morgan Brown http://blownmortgage.com/2007/06/02/public-pension-funds-buy-bottom-of-the-barrel-debt/comment-page-1/#comment-242 Morgan Brown Tue, 05 Jun 2007 16:20:02 +0000 http://blownmortgage.dreamhosters.com/?p=364#comment-242 irate - great point. If Wall Street is turning down 20% you know there is something wrong with it. I don't know a single Wall Street person who would turn their nose up at 20% unless it really stunk. I don't think those tranches have a shot in hell at 20% now. irate – great point. If Wall Street is turning down 20% you know there is something wrong with it. I don’t know a single Wall Street person who would turn their nose up at 20% unless it really stunk.

I don’t think those tranches have a shot in hell at 20% now.

]]> By: Morgan Brown http://blownmortgage.com/2007/06/02/public-pension-funds-buy-bottom-of-the-barrel-debt/comment-page-1/#comment-243 Morgan Brown Tue, 05 Jun 2007 16:18:45 +0000 http://blownmortgage.dreamhosters.com/?p=364#comment-243 Tom - That is great. I can see that happening in all too many instances. I also love how fund managers take portfolio advice from the people selling the stuff. That is like you listening to me as a mortgage broker say "yeah - go ahead and buy 4 homes; we'll just state your income to this - mark them all owner occupied, etc." it happens; but it shouldn't. Thanks for sharing. Tom – That is great. I can see that happening in all too many instances. I also love how fund managers take portfolio advice from the people selling the stuff. That is like you listening to me as a mortgage broker say “yeah – go ahead and buy 4 homes; we’ll just state your income to this – mark them all owner occupied, etc.” it happens; but it shouldn’t.

Thanks for sharing.

]]> By: Morgan Brown http://blownmortgage.com/2007/06/02/public-pension-funds-buy-bottom-of-the-barrel-debt/comment-page-1/#comment-244 Morgan Brown Tue, 05 Jun 2007 16:16:36 +0000 http://blownmortgage.dreamhosters.com/?p=364#comment-244 sam - that is a great point. As a tax payer I hate the thought that people's irresponsibility is going to be financed out of my wallet. This is across the board, from borrower's who used their homes as ATMs to fund managers who took the advice of salesmen to add to their portfolio with zero support equity tranche purchases of CDOs. Some people come on here (mostly industry people) and say "the borrower's have to take responsibility - stop saying it's everyone's fault except there's" and I hope that I am clear that there is blame-a-plenty up and down this chain. Thanks for reminding me why I should be upset across the board. sam – that is a great point. As a tax payer I hate the thought that people’s irresponsibility is going to be financed out of my wallet. This is across the board, from borrower’s who used their homes as ATMs to fund managers who took the advice of salesmen to add to their portfolio with zero support equity tranche purchases of CDOs.

Some people come on here (mostly industry people) and say “the borrower’s have to take responsibility – stop saying it’s everyone’s fault except there’s” and I hope that I am clear that there is blame-a-plenty up and down this chain.

Thanks for reminding me why I should be upset across the board.

]]> By: sam http://blownmortgage.com/2007/06/02/public-pension-funds-buy-bottom-of-the-barrel-debt/comment-page-1/#comment-245 sam Tue, 05 Jun 2007 13:49:59 +0000 http://blownmortgage.dreamhosters.com/?p=364#comment-245 Why would you be pissed if you were a firefighter? They get the same amount regardless. You should be pissed if you're a taxpayer! Not only are you paying for excessively generous pensions promised by politicians 20 years ago to buy votes from public employee unions, you're also paying to make up for the loss these funds will take in their "high yield" crapbonds. And if the politicians have their way, you very well may be paying the moron who took out the loan that created the crap in the first place. Why would you be pissed if you were a firefighter? They get the same amount regardless.

You should be pissed if you’re a taxpayer!

Not only are you paying for excessively generous pensions promised by politicians 20 years ago to buy votes from public employee unions, you’re also paying to make up for the loss these funds will take in their “high yield” crapbonds.

And if the politicians have their way, you very well may be paying the moron who took out the loan that created the crap in the first place.

]]> By: Tom Johnson http://blownmortgage.com/2007/06/02/public-pension-funds-buy-bottom-of-the-barrel-debt/comment-page-1/#comment-246 Tom Johnson Tue, 05 Jun 2007 07:17:59 +0000 http://blownmortgage.dreamhosters.com/?p=364#comment-246 Great site. The wizards of Wall St. Made billion dollar bonuses creating this AAA junk that is now toxic waste. This stuff represents their billion dollar bonus pool for 2007. When I worked in the investment world, we called these guys "Bond Daddies" The sale goes like this: BD: I have a great new CDO issue for you. Pension Fund Guy(PFG): Really? BD: "It's a good one. How much you need?" PFG: "I don't know, you know my son is graduating from high school and I really wanted to get him a Rolex, he is such a good boy." BD: "Gold President? $50 million?" PFG: "Sounds good." BD: "OK! I'll send it to your house. My best to your boy!"(hanging up phone, dials trading desk shouting to assistant, "Get a Gold President over to PFG today!" Places $50 Million order with bond desk. In my day, it was CMO's and SLG's Savings and Loan Guys. CDO's: Mr Tiffany: "Rolexes all around!" Great site. The wizards of Wall St. Made billion dollar bonuses creating this AAA junk that is now toxic waste. This stuff represents their billion dollar bonus pool for 2007. When I worked in the investment world, we called these guys “Bond Daddies” The sale goes like this:
BD: I have a great new CDO issue for you.
Pension Fund Guy(PFG): Really?
BD: “It’s a good one. How much you need?”
PFG: “I don’t know, you know my son is graduating from high school and I really wanted to get him a Rolex, he is such a good boy.”
BD: “Gold President? $50 million?”
PFG: “Sounds good.”
BD: “OK! I’ll send it to your house. My best to your boy!”(hanging up phone, dials trading desk shouting to assistant, “Get a Gold President over to PFG today!” Places $50 Million order with bond desk.

In my day, it was CMO’s and SLG’s Savings and Loan Guys.

CDO’s: Mr Tiffany: “Rolexes all around!”

]]> By: irate in canada http://blownmortgage.com/2007/06/02/public-pension-funds-buy-bottom-of-the-barrel-debt/comment-page-1/#comment-247 irate in canada Tue, 05 Jun 2007 05:01:40 +0000 http://blownmortgage.dreamhosters.com/?p=364#comment-247 Selling this crap is wall street's way of washing their hands of it and sticking it with the working class[retired even] ,by spreading it out through all these pension funds.These fund managers should be put in jail ... if wall steet dont want 20% returns somthing has to be very wrong with them. Selling this crap is wall street’s way of washing their hands of it and sticking it with the working class[retired even] ,by spreading it out through all these pension funds.These fund managers should be put in jail … if wall steet dont want 20% returns somthing has to be very wrong with them.

]]> By: W.C. Varones http://blownmortgage.com/2007/06/02/public-pension-funds-buy-bottom-of-the-barrel-debt/comment-page-1/#comment-248 W.C. Varones Tue, 05 Jun 2007 00:39:13 +0000 http://blownmortgage.dreamhosters.com/?p=364#comment-248 I hope the CalPERS manager at least got kickbacks/bribes to buy that crap. Maybe with a Lewinsky or two thrown in. I hope the CalPERS manager at least got kickbacks/bribes to buy that crap. Maybe with a Lewinsky or two thrown in.

]]> By: Belligerati http://blownmortgage.com/2007/06/02/public-pension-funds-buy-bottom-of-the-barrel-debt/comment-page-1/#comment-251 Belligerati Mon, 04 Jun 2007 00:18:44 +0000 http://blownmortgage.dreamhosters.com/?p=364#comment-251 <strong>CDO's in the news</strong> On Friday, David Evans, in a piece Banks Sell 'Toxic Waste' CDOs to Calpers, Texas Teachers Fund over at Bloomberg blasted pension funds for holding the equity of CDO's. It covers a lot of bases, what's in them, how difficult... CDO’s in the news

On Friday, David Evans, in a piece Banks Sell ‘Toxic Waste’ CDOs to Calpers, Texas Teachers Fund over at Bloomberg blasted pension funds for holding the equity of CDO’s. It covers a lot of bases, what’s in them, how difficult…

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