Remember the infamous Fannie Mae and Freddie Mac that kick-started the last financial crisis? Last month hedge fund Bayview Financial bundled their junk securities into $118 million new bonds. Fitch Rating immediately stamped it with A- for investment grade. Didn’t they do the same for subprime mortgage bonds that were once top-rated AAA debts before the US housing bubble burst? This is just the start. There is a total of $6 trillion US government-backed mortgage bonds waiting to be offloaded to the investors. Trump is keen to market these mortgage bonds to Wall Street investors at dirt cheap prices. Well, whether this is rock solid or a time bomb, only time will tell. The big short on loan defaults We tend to have selective amnesia for painful lessons from bad investment. When the market crashes, everyone feels the pain. We mourn and shed tears. But when everything’s over, it is ......