Earlier this month, CNBC featured a segment on how sub-prime mortgages work. The shame of it, though, is that it aired at a time when the probable audience was already well-versed on the topic.
This would be like holding a seminar on how to throw a baseball to the attendees of the Baseball Hall of Fame induction ceremonies this weekend. Chances are pretty good they already know how.
The folks that really needed to see this clip are the average homeowners of America.
In 4-minutes-and-18-seconds, CNBC very clearly explains how losses in the sub-prime market are beginning to trickle up to into "prime" market. And this aired before some major, major fireworks.
Since the original air date, the following "bad things" have happened:
Big numbers, folks, and they are creating a larger fear about United States mortgage-backed debt on the whole. Previously contained, the fear is now creeping out of sub-prime and into the 'tweener Alt-A market.
If sub-prime and Alt-A loans keep throwing off losses of this magnitude, investors around the world will eventually stop buying the "Triple AAA"-rated stuff described in the video, too.
Watch the clip. It's only four minutes long.
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