Originally Posted by GreyWolf

You noticed what the banks and brokerage corps are doing now? Decorating what they describe as "prime investments" and repackaging these CDO's and trying to offload them on to unsuspecting investors. When you look at the composition of these bonds - they contain a high percentage of sub-prime mortgage problems and fat chance of an investor actually gaining by purchasing them.

Typical example are CDO-based hedge funds from Bear Stearns which have been reported to be worthless. There is also a rising conflict of interest with rating agencies who value these CDO's - they same rating agencies are supported financially by the industry selling them. Due dilligence is missing.

Bottom line - financial institutions are trying to offload the problem they created on to unsuspecting investors - yet another time-bomb waiting to blow.