Monday, August 06, 2007

Too Bad, So Sad

Just like those piggies who thought they'd get rich quick flipping real estate. Bloomberg (07.20.07), via Eschaton:
"Federal Reserve Bank of St. Louis President William Poole said investors who lost money buying subprime mortgage-linked securities got what they deserved.

Poole criticized the underwriting standards and interest- rate assessments of Wall Street and endorsed the Fed's steps to strengthen consumer safeguards."

Poole Says Subprime Investors Deserved to Lose Money

"'The punishment has been meted out to those who have done misdeeds and made bad judgments,' Poole told reporters in St. Louis after a speech on the market for mortgages to borrowers with sketchy or weak credit histories. 'We are getting good evidence that the companies and hedge funds that are being hit are the ones who deserve it.'"

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