Here we go again! “Wall Street repackages ‘toxic debt’”

This headline takes a financial engineering strategy and boils it down to garbage in, garbage out.

The actual text of the story is pretty fair in describing a senior/sub structure, but falls short in the actual details.  Re-REMIC is a local and legitimate activity.  It will allow the secondary mortgage market to open and for prices to reach a realistic level that reflects the economic value, not just the price according to the downgraded rating.

Click the link below to read the entire article:

Remember Me? Wall Street Repackages Toxic Debt – The Associated Press, August 24, 2009