So if only 1 out of 20 mortgages fail and the leverage at 10:1 they get only half the margin and squeak out a small profit. But if they leverage at the Fannie Mae/Freddy Mac rate of 24:1 they loose their butts? What do the knuckle dragging derivative idiots who leveraged at 40:1 loose when 1 out of 20 fail? Do they loose their heads? Please explain.
Oh, does this make the Mofia more Honest than Wall Street? Or Congress?
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So if only 1 out of 20 mortgages fail and the leverage at 10:1 they get only half the margin and squeak out a small profit. But if they leverage at the Fannie Mae/Freddy Mac rate of 24:1 they loose their butts? What do the knuckle dragging derivative idiots who leveraged at 40:1 loose when 1 out of 20 fail? Do they loose their heads? Please explain. Oh, does this make the Mofia more Honest than Wall Street? Or Congress?