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EXCLUSIVE: Wall Street Rock!

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WALL STREET ROCK: HOW YOUR MORTGAGE LOAN BECAME A GLOBAL CALAMITY
By John Melloy, Fast Money Senior Producer


BOY: WHEW. THE BUILDINGS ON WALL STREET SURE ARE TALL.
I WONDER WHO THIS SAD LITTLE SCRAP OF PAPER IS.

LOAN: I'M A MORTGAGE.
JUST A MEASLEY MORTGAGE LOAN.
AND I'M SITTING HERE OUTSIDE THIS INVESTMENT BANK'S HOME.
IT'S A LONG, LONG JOURNEY FROM IOWA CITY.
TO BECOMING A GLOBAL CALAMITY.

BOY: GEE MORTGAGE LOAN, YOU CERTAINLY HAVE A COME A LONG WAY.

LOAN: WELL ONE DAY, MY OWNER SAM BORROWED $100,000 TO BUY A HOME.
GIVING BIRTH TO ME, THE MORTGAGE LOAN.
BUT THE BIG BANK THAT LENT ME TO SAM.
DIDN'T KEEP ME IN A SAFE, BUT TOLD ME TO SCRAM.
INTO A BIG POOL I WENT...
WITH A THOUSAND OTHER MORTGAGE SECURITIES THAT WERE LENT.
UP ON WALL STREET A BIG INVESTMENT BANK DECIDES TO KEEP ME ON THE GO..
GROUPING ME WITH CAR LOANS AND CREDIT CARDS TO FORM A C-D-O
FROM THERE I'VE BEEN SPREAD EVEN MORE ASUNDER.
FROM HEDGE FUNDS AT BEAR STEARNS TO THE LENDERS DOWN UNDER.

BOY: LISTEN TO THOSE HEDGE FUND MANAGERS ARGUING. IS ALL THAT DEBATE ABOUT YOU?

LOAN: YES YOU SEE. THEY DON'T KNOW WHAT I'M WORTH AND DON'T KNOW WHAT TO DO.
UNTIL THEY FIGURE THIS OUT. TRADERS, LAWYERS AND REPORTERS WILL MAKE A BIG FUSS.
AND BANKS DON'T WANT TO LEND TO ANYONE, UNTIL THEY KNOW WHO THEY CAN TRUST.

BOY: OH NO!

LOAN: OH YES.
AND SO A BANK CHARGES MUCH MORE MONEY TO TAKE ANY RISK,
AND THAT MAKES IT HARDER FOR THE GLOBAL ECONOMY TO LIFT.
SO HERE I AM A MORTGAGE FROM IOWA CITY
WHO'S GROWN UP TO BECOME A GLOBAL CALAMITY.


Be sure to catch Fast Money tonight for more...

>Watch the original Schoolhouse Rock: How a Bill Becomes a Law Video

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