Matt Mullins

"Your going to get a lot of compliments for this post, and deservedly so. Here's why some are calling it "brilliant." I think part of the mess we are in has to do with promises made back when subprime mortgages were becoming popular. For borrowers, the promise of a home with low payments (a false sense of affordability) and rising home prices. For lenders, the promise of unlimited profit potential from Wall Street if the lenders let the Bankers sell mortgage-backed securities. For investors, the promise of AAA quality streams of income. I'm guilty of falling for these promises when I helped issue MBS at New Century Financial. My point is that promises can be blinding. We don't do as good of a job with our due diligence processes because of promises. Ideas force further investgation on our part. Even better, ideas don't box you into a specific trade. They do, though, help establish a foundation from which you can make a trade given your unique risk profile. At New Century, we went on..." - Matt Mullins