Michael, just take a beat, we'll talk about this later!
Lawrence please, don't patronize me, if... it .. Is... Mortgage backed securities, sub-prime loans, tranches... Is pretty confusing right?
Doesn't it make you feel bored... Or stupid... Well... it's supposed to.
Wall-street loves to use confusing terms, to make you think only they can do what they do.
Or even better... For you just to leave them the f*** alone.
So... here's Margot Robbie in a bubble-bath to explain.
Basically, Lewis rainieri's mortgage bonds were amazingly profitable for the big banks.
But then they ran out of mortgages to put in them.
After all, there are only so many homes and so many people with good enough jobs to buy them... right?
So the banks started filling these bonds with riskier and riskier mortgages thank you Henry that way, they can keep that profit machine churning right?
By the way, these risky
mortgages are called:
Sub-prime.
So... whenever you hear sub-prime...
Think:
Sh*t our friend Michael burry found out, that these mortgages bonds that were supposedly 65 percent AAA, were actually just, basically full of sh*t.
So now he's going to short the bonds which means... bet against.
Got it?... Good!
Now f*** off!
It's only a matter of time before someone else sees this investment, we have to act now.
How do you know the bonds are worthless?
Aren't they filled with f***ing thousands of pages of mortgages?
I read them!
You read them?
I read... yeah!
No-one reads them, only the lawyers who put them together read them!
I don't think they even know what they've made the housing market is propped up on these bad loans.
