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What's a subprime mortgage originator ? A person or company that pushes people between the 5th and the 29th percentile to take on debt that they cannot repay
What's a subprime mortgage broker? A company that buys the subprime mortgages from the originator and sells it to an investment bank
What's a subprime mortgage securitizer? An investment bank that buys the subprime mortgages from the broker, puts them in a company, and sells its bonds to investors
What's a subprime mortgage security ? A slice of a pile of shit
What's a subprime mortgage bond rating agency? A joker played by the investment banks to rate the slices of that pile of shit with triple A, triple B, or anything in between
What's a CDO (Collateralized Debt Obligation)? A pile of shit made out of the worst slices of the original pile of shit. The top slices are now suddenly rated triple A, which smell better than shit (it's like deodorant - it's just smells better temporarily)
What's a CDS (Credit Default Swap)? An insurance on a slice of shit - but the great thing though, is that you do not need to own the slice of shit to take insurance on it. It is like buying life insurance on your neighbour's head, once you own it, you'll find a way to get him dead...
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