Yes, excellent commentary Mr Jason. This article takes my breath away. What can be done? One ponders the idea of a fixed monetary supply which would naturally prohibit such speculation, doing away with the constant fiduciary malfeasance which is commonly attributed to first receivers. QE is coming home. You ain’t seen nothing yet.

Well at least the Appraisers won’t be tax payers!

Unlike Freddie and Fannie’s mortgage-backed securities, which guarantee investors their principal and interest, the credit-risk transfers guarantee nothing. They merely reference a group of loans, making the junk investments a form of synthetic security. It smacks of the synthetic instruments that were all the rage in the lead-up to the financial crisis.

Under the banner of reducing taxpayer risk, Fannie and Freddie now partner with private capital to peddle the swaps and help keep the niche market liquid.”

Bankman Fried must be jealous.