Saturday Oct 23 2010
The great mortgage implosion of 2008 was finally caused by a mis match of liabilities and revenue. Banks and brokers had sold short term commercial paper backed by long term mortgages, and then leveraged the mortgages so there was even more on the line. When a few mortgages were late in paying the commercial paper could not be paid and well, next thing you know Hank Paulson is on TV demanding $700 B.
We are studying current liabilites as well as bonds in intermediate accounting. Here Matt Taibbi details how Pennsylvania tried to sell the PA Turnpike to a group of mid east investors. Mayor Daley did sell the next 75 years of parking meter revenue to a group in Dubai, want to guess what meter fees have done since? Here is an excerpt from the upcoming book, oh a grifter is someone who makes money by illegal means.
Professor Elam 
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