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Lehman's Brothers successfully sued in Australia .Follow

#1 Sep 21 2012 at 3:49 AM Rating: Excellent
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Today’s decision signals that about 70 councils, church groups and charities in Australia which made similar investments may be more likely to recover about A$200 million.
Bloomberg

CDOs/SCDOs were at the heart of starting the GFC. Basically Investment banks were busily selling high risk investments that were purported to be low risk investments to governments, large institutions, and retirement investment institutions all over the world. It's what took the entirety of Iceland down and crashed the American retail banks. They were making "lucky dips" by bundling anonymous groups of low-security mortgages with high-security mortgages and selling them all off to investors for the price of mid-risk mortgages.

Investors were in effect paying for a bundle of three cars at BMW prices, with the chance that what they bought was any combination of a Nissan Versa, a BMW, and a Ferrari. Needless to say, the unlucky investors who received a heap of three Nissan Versas for the price of three BMWs just unexpectedly flushed most of their money down the toilet.

Edited, Sep 21st 2012 8:22am by Aripyanfar
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#2 Sep 21 2012 at 7:26 AM Rating: Good
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Aripyanfar wrote:
Investors were in effect paying for a bundle of three cars at BMW prices, with the chance that what they bought was any combination of a Nissan Versa, a BMW, and a Ferrari.
You know, I'm not much of an investor, but that sounds like a scam to even me.
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#3 Sep 21 2012 at 8:01 AM Rating: Decent
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CDOs/SCDOs were at the heart of starting the GFC. Basically Investment banks were busily selling high risk investments that were purported to be low risk investments to governments, large institutions, and retirement investment institutions all over the world. It's what took the entirety of Iceland down and crashed the American retail banks. They were making "lucky dips" by bundling anonymous groups of low-security mortgages with high-security mortgages and selling them all off to investors for the price of mid-risk mortgages.

Investors were in effect paying for a bundle of three cars at BMW prices, with the chance that what they bought was any combination of a Nissan Versa, a BMW, and a Ferrari. Needless to say, the unlucky investors who received a heap of three Nissan Versas for the price of three BMWs just unexpectedly flushed most of their money down the toilet.


Wow, no. I get the car analogy thing, but not really close to what happened at all.
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#4 Sep 21 2012 at 9:14 AM Rating: Excellent
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Wow, no. I get the car analogy thing, but not really close to what happened at all.

I still think this phenomenon was the biggest trigger that set off the GFC, even though there was a massively important list of deregulations of investment bank rules and retail bank rules in the 80s-90s that all played their parts in the cluster@#%^.

Please feel free to explain what you think collapsed the financial markets and led to the massive credit crunch where banks globally were almost no longer lending money to each other so that they could continue extending the usual credit lines to businesses and individuals. Was it particular rule deregulations? Was it other behaviour?

Also feel free to explain mortgage-backed securities (MBS). collateralized debt obligations (CDO) and credit default swaps (CDS) in a much better way than I can. I understand that investors could get no "cars" back at all, because the securities they invested in without understanding their full nature put them in a position where they weren't able to repossess and sell off houses when mortgagees defaulted on their house loans.



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#5 Sep 21 2012 at 9:16 AM Rating: Decent
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I still think this phenomenon was the biggest trigger that set off the GFC, even though there was a massively important list of deregulations of investment bank rules and retail bank rules in the 80s-90s that all played their parts in the cluster@#%^.

Please feel free to explain what you think collapsed the financial markets and led to the massive credit crunch where banks globally were almost no longer lending money to each other so that they could continue extending the usual credit lines to businesses and individuals. Was it particular rule deregulations? Was it other behaviour?

Also feel free to explain mortgage-backed securities (MBS). collateralized debt obligations (CDO) and credit default swaps (CDS) in a much better way than I can. I understand that investors could get no "cars" back at all, because the securities they invested in without understanding their full nature put them in a position where they weren't able to repossess and sell off houses when mortgagees defaulted on their house loans.


I've done all of that. Here. I'm sure at some point I got to the "it's too complicated for you idiots to understand beyond this part" phase. Don't recall exactly where.
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#6 Sep 21 2012 at 10:03 AM Rating: Excellent
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I think it's time to open a business in Australia.
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#7 Sep 21 2012 at 10:26 AM Rating: Excellent
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Ha, ha, the money the US taxpayers paid to bail out the investment banks that didn't immediately get shuttled off to private Swiss bank accounts is going to be paid out to international suers wanting financial reparations.

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There's a separate case being run in Australia which is targeting Standard and Poor's - the ratings agency which rated these products as triple A - and that action will involve investors worldwide.


Edited, Sep 21st 2012 4:34pm by Aripyanfar
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#8 Sep 21 2012 at 12:53 PM Rating: Decent
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Ha, ha, the money the US taxpayers paid to bail out the investment banks that didn't immediately get shuttled off to private Swiss bank accounts is going to be paid out to international suers wanting financial reparations.

Is? I think you should stick with language of the article. It "may". More likely they'll settle, toss a little money to your tiny government then go buy yachts. Not like there's anything else to do down under.
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To make a long story short, I don't take any responsibility for anything I post here. It's not news, it's not truth, it's not serious. It's parody. It's satire. It's bitter. It's angsty. Your mother's a whore. You like to jack off dogs. That's right, you heard me. You like to grab that dog by the bone and rub it like a ski pole. Your dad? Gay. Your priest? Straight. @#%^ off and let me post. It's not true, it's all in good fun. Now go away.

#9 Sep 21 2012 at 5:12 PM Rating: Good
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Smasharoo wrote:
Ha, ha, the money the US taxpayers paid to bail out the investment banks that didn't immediately get shuttled off to private Swiss bank accounts is going to be paid out to international suers wanting financial reparations.

Is? I think you should stick with language of the article. It "may". More likely they'll settle, toss a little money to your tiny government then go buy yachts. Not like there's anything else to do down under.


Prostitutes.
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#10 Sep 21 2012 at 8:30 PM Rating: Decent
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#11 Sep 22 2012 at 1:46 AM Rating: Good
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"What we dealt with in these proceedings is to see whether or not we could make it accountable - an investment bank which actually sought to target not-for-profit organisations and make profit from selling derivatives to them in circumstances where they certainly should not have sold these products to those targets."
Products that were marketed as AAA secure, but in reality were NOT AAA, and never should have been rated at AAA.
http://www.abc.net.au/news/2012-09-21/lehmann-brothers-test-case/4273896?WT.svl=news4

Edited, Sep 22nd 2012 3:47am by Aripyanfar
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