The housing markets almost crippled a nation and perhaps the world. The ramifications still being felt even today. NPR’s Planet Money bought the toxic asset at $1000.00, the ilk of which diluted mortgages to stock holders and gave them promise of wealth. A pyramid scheme at best. They named their stock, “Toxie” and this week it died a slow death due to loan modifications and not foreclosures. The animated tale of Toxie is funny but yet a sad state of affairs for many victims of an elaborate plan to deplete people of their savings. Greed got the best out of investors who mortgaged the future of our world.
“We’re in the third inning on the toxic asset business,” says Wit Solberg of Mission Peak Capital, who helped us buy Toxie. “There’s still a lot more that’s sitting in people’s balance sheets,” he said. “Unfortunately the line is really long, like around the corner, up the steps.”