Financial history doesn't repeat itself, but it often rhymes.
You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.
Sunday, March 29, 2009
The Geitner plan
I was listening to Gregory on Meet the press.
Using a generic Bond rate from 2006
3% CDO at $10,000= $300
5K from Treasury, 5K from Pico.
Levered up 6X= $1800
$10000 investment returns $1800 per year=18% ROI(of course you can just multiply the interest times the leverage.
Even if the bond only performs for only 5 years you break even.
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