http://globaleconomicanalysis.blogspot.com/2010/04/mish-makes-senat...

Inquiring minds are digging extremely deep into a 666 page Senate hearing document on the financial crisis.

I am now part of the official record of the US Senate Permanent Subcommittee On Investigation Exhibits of the Wall Street and Financial Crisis, the Role of High Risk Home Loans published April 13, 2010.

Exhibit 51 starts is on pages 434-439 of the document.

The next several pages are screen snapshots from Evidence of "Walking Away" In WaMu Mortgage Pool written Saturday February 23, 2008.

Here are some of my comments at the time.

Let' do the math.

• The total pool size is $513,969,100.
• $476,069,000 was rated AAA.
• 92.6% of this cesspool was rated AAA.
• Yet 15% of the whole pool is in foreclosure or REO after a mere 8 months!

In addition, the data suggests that people are not even bothering to wait
for delinquencies to hit 90 days. Instead they are handing over the
keys right now.

Washington Mutual was the underwriter. If you bought a slice of this cesspool from WaMu, are you going to buy their
next offering? One final question: Does anyone have any reason to trust
any rating from Moody's, Fitch, and the S&P?

Those comments and various screen shots I posted (the entire blog post
actually) are now part of the official Senate investigation. It's too
bad they were not reading me in 2006 when I warned this would happen.

By the way, there is no way I would have found that reference on my own accord, but somehow a reader did.