Actually, my name is jeong, and... I do speak English Jared likes to say it though.. Because he thinks it makes me seem more authentic and... I got second in that national math competition so... you're offering us a chance to short this pile of blocks?
How?
With something called a credit default swap.
It's like insurance on the bond, and if it goes bust, you can make 10-to-1.
Even 20-to-1 return, and it's already slowly going bust.
10-to-1, 20-to-1... No way!
And no-one is paying attention.
No-one is paying attention.
Because the banks are too busy getting paid obscene fees to sell these bonds.
But wait... you are the bank you work for the bank, I bet your margins are pretty nice and fat.
Let's not talk about my margins by the way.
Being nice and fat... that's a nice shirt, do they make it for men?
Aren't you the bank?
I work for the bank!
I don't think like a bank big banks, small bank... I like to make money.
Alright... Let me put it this way... I'm standing in front of a burning house, and I'm offering you fire insurance on it how can these underlying bonds be... As bad as you say?
It wouldn't be legal!
Nobody knows what's in them!
Nobody knows, what's in the bonds, I've seen some that are 65 percent AAA-rating.
That I know, for a fact, are filled with 95 percent sub-prime sh*t.
With fico's below 550 get the f*** out of here!
Want me to really blow your mind?
When the market deems a bond too risky to buy, what do you think we do with it?
Take a guess! Wi don't I don't know, you tell me!
Alright... You think we just warehouse it on the books?
