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FDIC to Sell Mortgage-Backed Securities (Really!)
By Alec Foege
Jul 22nd 2010 @ 4:57PM
Jul 22nd 2010 @ 4:57PM
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On its face, it's a shocking headline -- but it's not quite what it seems. The Federal Deposit Insurance Corporation announced today that it would begin selling bonds backed by residential mortgages. If these sound a little too much like the kinds of financial instruments that cratered the economy in 2008, rest assured that these securities are quite different. For one, the $500 million in underlying mortgages come from 250 banks that the FDIC has shut down since 2008. More importantly, 85 percent of the bonds will be guaranteed by the FDIC; it may not even sell notes based on the mortgages most likely to default. FDIC chairman Sheila Bair and Federal Reserve chairman Ben Bernanke, pictured above, discussed U.S. monetary policy yesterday.
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What The FDIC will be selling are no different. They are worthless. They were worthless when the FDIC bought them. They have no intrinsic value what so ever. Look up 15 USC 7003. Electronic promissory notes have no supporting law. Electronic mortgage backed securities have no supporting law. Whoever, buys this stuff will be giving their monies away. They will in fact, be investing in worthless electronic mortgage backed securities that have no law to support them and no value to recover from. Some day, someone will actually look to see if I am wrong. Then the lights will go off. No value what so ever, do these securities have. Read scribd.com/alviec