And, every time it does of course then you or someone like you would get a fee, and a mark up and
And a profit, yes. You don't expect me to do it for nothing. It's hard work...
In view of the fact that in these packages is a lot of dodgy debt, what is it about it that attracts the financial risk takers?
Well, because these hedge funds as they're called which specialize in these debts--they all have very good names.
You mean they're responsible companies.
No no. It has nothing to do with their reputation. They have actually very, very good names--the names they think up are very good. I'll give you an example. There's a very well-known American Wall Street firm called Bear Stearns, who have two of these hedge funds which specialize in these mortgage debts and they lost so much money, well, lost so much of their value that Bear Stearns announced they would have to put in $3.2 billion dollars into one of the funds to try to keep it afloat.
$3.2 billion dollars?
$3.2 billion, yes. And even then, they said the investors couldn't get any money out of it, and they were going to let the other fund go. BUT, one of these funds was called The High Grade Structured Credit Strategists Fund, and the other was called the High Grade Structured Credit Enhanced Leverage Fund.
Well that sounds very good. That sounds very trustworthy.
This is the magic of the market. What started off as loaning a few thousand dollars to an unemployed man in a string vest has become the High Grade Structured Credit Enhanced Leverage Fund.
I like the sound of it.
It is good. It sounds very trustworthy. It's got good words in it. It's got words like High.
High is good.
High is good, better than low anyway, and structured is another good word.
Very good.
Enhanced...
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