You're getting way ahead of the class. You have inadvertently led the discussion to what is known as "Special Purpose Vehicles."<quoted text>Poor people don't lend money. Wall St. millionaires took the bad loans the bank millionaires made and sold it to the world. That's what caused the housing collapse. Millionaires and billionaires.
Same thing with ALL the jobs shipped to China. The workers didn't ship them. It was people like Bill Gates and Steve Jobs. Two of the richest people EVER in America. The rich are killing America but you Repubs defend them each and everyday.
A "Special Purpose Vehicle" is an offshore company created by the owner of worthless mortgages created by the Democrats' lunatic subprime loan program. The mother company "sells" the worthless mortgages created by the Democrats' idiotic subprime loan program individually, bundles in what is called "traunches." The "Special Purpose Vehicle" sells the traunch back to the mother company as a single unit. This removes the individual "toxic assets" created by the Democrats' subprime loan program form the books of the mother company, and replaces them with the "traunch" that cannot be investigated because the "Special Purpose Vehicle" isn't a company in the United States. It is in a foreign country.
Then, because the "traunch" is a real estate traunch, and it is widely known that Americans pay their mortgages, the "traunch" is given a AAA rating.
There is quite a bit of fraud and deceit involved in getting the AAA rating applied.
Ben Bernanke was testifying before Barney Frank's committee and utterred the words "Special Purpose Vehicle." Immediately after he uttered those words, all questioning of him immediately ceased. Bernanke mentioning "Special Purpose Vehicle" in front of Barney Frank's committee was enough to shut every goddam Democrat mouth in DC. Later, Bernanke received unanimous support from the Democrats to continue as head of the Fed.
One would suspect a connection there.....