What do you get when the three little pigs met the mortgage meltdown? You get the three little securities.
It’s a story I wrote recently. This video is part one of four. It’s called When The Three Little Securities Met An Investment Banker and it’s going to life changing talent. Here we go.
Once upon a time there lives three little securities a Bond, and Option, and the Stock. They said often to the world one day to make a living. Their only worry was to keep be insidious wolf inflation from devouring all of their hard work. They took a walk together down the Wall Street one day. Eventually, they met an investment banker. “I have company’s raise money or capital.” he said to the securities. “I take something and there is like part ownership in their company and sell it to investors for cash. It’s like selling real estate except the thing I’m selling isn’t the house. It’s usually paper like a certificate or contract with dual rights as the one investing the money.”
Bound where mark, “That’s a mouth full they say that you’re just the paper salesman.” The banker grimmest “Not that there’s anything wrong with selling paper, but we finance both can be much more sophisticated than that especially when it comes to earning a heck of a lot of money, so that inflation doesn’t eat into your hard work when he comes around.”
Bound to option appear to be excited, but stock he appeared skeptical. “Why don’t you help me with the projects.” said the investment banker. “The local savings and loan bank at the intersection of Wall and Main streets called me. They help new residents in nearby suburb get mortgages to buy homes in the late 1990’s. There’s a flagship best of a store in the suburb too.” the banker said.
So the savings and loan manager figure the new residents will adjust for the long term. Best of this acts options, “What’s that?” “Exactly.” replied the investment banker. “There goes those jobs.” So the bank manager got nervous about having these mortgages on her books. “So I took them apprehends with the task of getting her some money in return. She can do a whole lot where with cash than she can with mortgages that may not get paid back. This is where you three securities can help me.”
The investment banker showed the three little securities a stock of mortgages from families in the neighborhood given to him by the bank manager including some from Mr. and Mrs. Bad Credit and The No Money Down family. Bond showing a great deal of interest stepped forward and offered to create a market or these mortgages. He scoped them up and headed to the next town.
That’s part one of four. Come back again for the next three parts, and see you then.
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