So you thought bundling mortgages as investments was a bad idea? HA!

**dc dalton** · September 15th, 2009, 03:22 PM

Just when you thought that maybe, just MAYBE, Wall Street would actually start using a little judgement about what they tried to sell as an investment the bozos that brought you triple A rated mortgage backed securities have come up with a new scheme.

This time the gig is buying up life insurance policies hoping the owners die soon for a bigger payoff ... yup, you read that right:

http://www.nytimes.com/2009/09/06/bu...surance&st=cse

Now THAT'S what I call a 'death panel'

**mojo** · September 15th, 2009, 03:25 PM

Originally Posted by dc dalton

Just when you thought that maybe, just MAYBE, Wall Street would actually start using a little judgement about what they tried to sell as an investment the bozos that brought you triple A rated mortgage backed securities have come up with a new scheme.

This time the gig is buying up life insurance policies hoping the owners die soon for a bigger payoff ... yup, you read that right:

http://www.nytimes.com/2009/09/06/bu...surance&st=cse

Now THAT'S what I call a 'death panel'

That's been going on for a while now. It's actually been declining a bit, especially since the bond market seized up. No body could get funding (read: credit) to buy the stuff. Know a guy that did that for about a year or so.

**dc dalton** · September 15th, 2009, 03:30 PM

Originally Posted by mojo

That's been going on for a while now. It's actually been declining a bit, especially since the bond market seized up. No body could get funding (read: credit) to buy the stuff. Know a guy that did that for about a year or so.

Yeah the buying of policies has been going on for a while but NEVER has it been securitized and sold as an investment on Wall street

**mojo** · September 15th, 2009, 03:35 PM

Originally Posted by dc dalton

Yeah the buying of policies has been going on for a while but NEVER has it been securitized and sold as an investment on Wall street

Kind of. The guy that I referenced was a sells guy. His job was to sell them to large Pensions, Endowments, Wealthy Individuals, etc. Basically, the same people that bought up all the crap mortgages.

People should really look into the stuff that our state invests in for it's pension fund. Most people think that ... "hey, I'm not on state pension so it really doesn't matter". Wrong ... when their funding is short, our tax money goes in there. BTW, last time I checked PA had a lot of interesting strategies in their fund. It's been a good year or two since I checked.

**phillyd2** · September 15th, 2009, 04:26 PM

Originally Posted by mojo

Kind of. The guy that I referenced was a sells guy. His job was to sell them to large Pensions, Endowments, Wealthy Individuals, etc. Basically, the same people that bought up all the crap mortgages.

People should really look into the stuff that our state invests in for it's pension fund. Most people think that ... "hey, I'm not on state pension so it really doesn't matter". Wrong ... when their funding is short, our tax money goes in there. BTW, last time I checked PA had a lot of interesting strategies in their fund. It's been a good year or two since I checked.

I think the main problem was that the way they were bundled not many knew or could understand what the hell was in those investments. Maybe they still don't.

**thelemite** · September 15th, 2009, 04:34 PM

Is it me or do viatical settlements just feel... um creepy.

**mojo** · September 15th, 2009, 04:41 PM

Originally Posted by phillyd2

I think the main problem was that the way they were bundled not many knew or could understand what the hell was in those investments. Maybe they still don't.

Very true. And they were lulled into a warm cozy feeling from the Rating agencies.