Paula Rush

Blackstone Now Bullish on Subprime?

One thing not mentioned here that is the main jist of the reasons for purchasing-these are distressed asset funds, everyone is doing it including big players like Goldman Sachs. Why? They are buying the assets for pennies on the dollar. Anywhere from 4cents on HELOCS -20-30 cents on the dollar for non performing loans and REO'S - and then ENFORCING THEM AGAINST THE BORROWER FOR 100 CENTS on the Dollar. Once again the WALL STREET CRIMINALS prosper at everyone elses expense. So New Century, Aegis, American Home, Merrill Lynch and many others, at the same time they REFUSE to modify loans and refuse to work with borrowers, sell off the same loans to "friends" and former financing partners`. In some cases it is the executives who created the crap forming LLC's to buy up the same crap. The investors on the front end got screwed, but the execs know how to turn their lemons into lemonade! So it has nothing to do with being bullish or bearish
(maybe BULLSHIT) it has everything to do with simple math. At pennies on the dolllar they see a profit no matter what they buy.