Another subprime statistics

The Mortgage Bankers Insurers Association [MBIA] have fessed up another earth shattering statistic. The Subprime Ponzi Scheme has brought homeowner equity in the US to a new all time low [for the moment]. The loss is ringing up to more than US$1,3trillion. Ain't that a kick in the head. And if that isn't bad enough, the Financial Times of London, among other financial sheets, reports that American and European banks are writing off almost us$400 billion, slightly more than 50 per cent by European mortgage backed debt holders. Which all goes to show how slick America's investment banking houses were in shedding the burden on their equally greedy peers in Europe and also likely in Asia. And if that is not enough, the gods bless, New York State attorney general Andrew Cuomo who is holding the rating agencies of Moody's and Standard & Poors' feet to the fire of the law, for their willingness to grant AAA or A3 status to CDO's, ABS, and the like without any dollar substance to support the debt they carried. If you didn't know it before, Moody's & S&P like the magicians they are got kick backs from the investment banking houses to prop up their debt for the most part. Now with fines and court cases and evidence on the books, they've now agreed to rating debt through fees which all banking houses contribute to for an even handed weights and balances of the debt. But this is but another chapter in an encyclopedia not yet finished on the effects of the scam that greedy Wall Street houses perpetrated with the helping hand of Herr Bush & his acolytes.