Those Mysterious Chinese Hedge Funds
Remember a couple of years ago when the housing bubble began to burst? And the financial media told us that homeowners could not even figure out who to re-negotiate their mortgages with? And that the mortgage derivatives market had become so complex that nobody could figure out who owned what? And that all the mortgages were being held by Chinese hedge funds for all anybody knew?
What kind of reporting was that?
It turns out that the mortgages were sitting right there on Wall Street the whole time. A big stinking pile of them were right at Bear Stearns. I’m wondering how exactly these things were hidden for so long on the balance sheets of public companies.
Even if it is Enron all over again, at least we know where some of the mortgages are now: they have been purchased on behalf of the tax payers and are safe-and-sound in the coffers of the Federal Reserve Bank. Your tax dollars at work…
Let’s hope that Chairman Bernanke can eventually turn a profit with the fire-sale prices he got on them.
