Pure Intellectual Masturbation is Fabulous
Editor’s Note:by Neil Garfield
“a ‘thing’ which has no purpose, which is absolutely conceptual and highly theoretical and which nobody knows how to price.”
Think about it. The foundation of the supply of money that was pressure pumped into our economic housing system resulted in inflation of home appraisals.
- It was so large that everyone thought the “market” was going up, when in fact it was going nowhere.
- Everyone knew it except the homeowners who were tricked into relying upon “lenders” who had no stake in the transaction except to close it and collect their fee.
- Under intense pressure from Wall Street consisting of the carrot of higher fees and the whip of unemployment if they didn’t comply, nearly everyone in the real industry on up to the securities industry was corrupted by this scheme.
- And it was all based upon creating a scheme that was so complex, nobody could understand it or assess the value of what they were buying.
- So front and center, the rating agencies and appraisers, both performing the same task, both violating the most basic standards of their “professions” gave credence to this intellectual exercise that far from pleasurable, brought the worst pain to the American soil since the Great Depression.
- The supreme Irony is that they still have us under their spell. We have good people pointing the finger at other good people raising hell about how nobody should get a free house, while the fight itself is allowing just that — a free house to anyone who walks away with title or proceeds from a foreclosure sale of property “secured” by a securitized loan.
- I have yet to see a single foreclosure sale where the party foreclosing had one dime at risk in the loan.
Fabulous Fab Tourre: The CDO’s I Create Are “Pure Intellectual Masturbation”
Fabrice “Fabulous Fab” Tourre has bitten his tongue again, after it was revealed in an e-mail that he likened the debt instruments he created to, “pure intellectual masturbation,” according to the Times of London.
He also said that his creation was “a ‘thing’ which has no purpose, which is absolutely conceptual and highly theoretical and which nobody knows how to price.”
While the SEC’s release of a full e-mail between Fabrice Tourre and his girlfriend did much to make the man look more sincere, these latest revelations will heap pressure on the Goldman Sachs market-maker as his Senate hearing looms.