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What happened to the toxic paper?

Started by errnum, 07/22/2009 10:58PM
Posted 07/22/2009 10:58PM | Edited 07/22/2009 10:59PM Opening Post
Has anyone heard what happened to the toxic paper?

Got to wondering, since apparently billions or trillions of toxic paper is not even important as Michael Jackson trivia.

Maybe Treasury officials burn toxic paper in 55 gallon drums every night-- Cheerful fires as the homeless relax after a hard day, savoring the delicate flavor of MD 20/20 and Boones Farm?

Or mysterious convoys of black semi's, carrying all the toxic paper for thousands of years safe underground storage at the Nevada Yucca Mountain nuclear facility?

Donated to George Soros in case he can figure out some way to use it?

Found this article, which is less romantic, but no less puzzling:
Posted 07/23/2009 06:45AM #1
I have seen many of the "toxic" assets climb in price in the last six months. Some MBS or ABS paper was trading in the 30-40 range, it is now back in the 60-80 range. Even at today's prices they represent huge historical spreads to treasuries.
When the world seemed like it was ending in Oct and Nov it was very hard to buy this paper even though it was yielding around 20%.