Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
He was refering more to a (demographic) age pyramid.

He was? Where? I don't see any implication that demographics are involved.

It is in concept no different than age-old practice of companies having preferential dividend shares, multiple-vote shares, golden shares, death-pill shares, etc, etc...

The differences:

  1. The ratings were fixed. Supposedly AAA tranches were nothing of the sort - and both speculators and ratings companies knew this. The distinction between low and high risk tranches was largely fiction.

  2. Low rates keep the pot boiling deliberately. This was a deliberate political move across the entire market to inflate the national economy and make it appear bouyant, and not random market action by small companies.

  3. Unlike individual share action, there's a good chance the Fed is going to hit the markets with another dose of low-rate crack, while leaving the individual borrowers to lose their homes.
by ThatBritGuy (thatbritguy (at) googlemail.com) on Sun Aug 19th, 2007 at 12:25:39 PM EST
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