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New Toxic Securities

 
Greg MacSweeney, writing at Wall Street & Technology (here), gives the latest on the securitization of life insurance into tradable securities. Greg quotes DBRS, a credit ratings agency, which says that no life settlement security has met its standards for “safety and security” to date. He also says critics believe these products are just like the exotic investments that triggered the financial meltdown.
Of course, Wall Street sources have said that these new securities are structured so that risk is diversified and are therefore safe. Where have we heard this kind of logic before? Don’t ask, don’t tell and reality will not exist? Good luck, suckers.
I have written about this new Wall Street adventure previously (here).