A huge report on Magnetar’s creating a bunch of CDOs and then betting against their creation came out over the weekend. You can read all about it here.
The reporters, Propublica and NPR, also coined a show-tune to go along with it.
The song is catchy. The tune, the lyrics, the mix of giddy and sinister plotting all come in a nice package.
Hopefully now people will realise that you can only boil the housing crisis down to “betting against the American Dream in six steps” if you have a great voice and a trombone.
Watch the video below. Here are the lyrics:
Step 1. We write a check to a Wall Street bank for $10 million and ask them to make us a CDO!
Step 2. They create the CDO using.. risky stuff! Very risky stuff! Extremely risky stuff!
Step 3. Other investors commit hundreds of millions of dollars to the CDO
Step 4. We bet AGAINST the CDO! Using a credit default swap.
Step 5. The housing market crashes, the CDO’s value drops to zero, our bet pays off and we make hundreds of millions of dollars and before you can say…
Step 6. We’re rich!
We’re gonna bet against the American Dream. We’re gonna be on the winning team. Purchase risky debt on a massive scale and then place a bet that the debt will fail!
Hundreds of millions from Magnetar, the economy collapsing like a dying star.
No one will know ’til it’s on NPR and who cares?!
It’s time to hit the town!
This sucker could down!
The housing market’s losing steam,
And all we gotta do… to make our dreams come true… is bet against the American Dream!
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