You know, shouldn't y'all be considering treasury bonds or utility stocks?
你们不应该考虑国债或公用事业股票吗？
In the late seventies banking wasn't a job you went into to make large sums of money.
It was a f***ing snooze!
Filled with losers!
Like selling insurance, or accounting and if banking was boring... Then the bond department at the bank was straight up comatose.
We all know about bonds... You give em to your snot nosed kid when he turns fifteen maybe when he's thirty he makes a hundred bucks.
Boring!
That is until Lewis rainieri came on the scene at Salomon brothers you might not know who he is but he changed your life more than Michael Jordan, the I-pod and YouTube put together!
Hey gentlemen, let's get some money in here.
Let's make some money!
What do you say?!
You see, Lewis didn't know it yet, but he already changed banking forever with one simple idea.
The mortgage backed security.
Or... private label mbs you got your average persons mortgage fixed rate, thirty years, boring!
Same, small payoff. Right!
But When you add thousands of them all bundled together suddenly, the yield goes up, but the risk is still small, because... Well, they're mortgages, and who the hell doesn't pay their mortgage?
What exactly is the credit-rating on this bond?
This bond gentlemen... Is AAA-rating!
This is exactly what the Michigan state pension fund has been looking for!
I'll buy twenty million!
Oh come on, live a little!
Twenty five million!
The money came raining down!
And for the first time, the banker went from the country-club to the strip-club.
