Subprime Market Completely Implode News Today : Breaking News, Live Updates & Top Stories | Vimarsana

To package mortgage derivatives or crappy mortgages, if you will, back before the last meltdown. that will always come up with the clever devices that do more harm than good. >> yeah, collateralization helps the subprime market completely implode. we're seeing the same thing right now were the stock market. i agree with black rock. you need real tangible asset that you can trade. i understand these are professional investors. the problem is it sets off a cascading effect with technical algorithms in trading. now you are retailers selling when they shouldn't and affects the average americans. i...

>> we have the inverse and leverage instruments, instruments like the vix and already a debate about the suitability of those products, the disclosures of those products given the events of last couple days and we'll be a participant in that. >> neil: do you worry that some have say we've gotten too clever for words? we've given the different options for stock. now it eclipsed the number of shares of stork that we have. >> i feel good about the market. i don't want to be pollyanish. the markets have functioned quite well the last couple days. >> neil: the markets have functioned well in the fa...

I'm saying that that happens. but that was feeding on reverse fears. and my issue with raising -- i've raised this sort of thing a lot -- is that we live in an age of emotional algorithms and mathematical formulas that are triggered by hundreds of elements and things. to the individual investor, you get caught up in that storm, you have no idea what the hell is going on. >> you have no idea what is going on. the retail investors think the market is going through a recession or depression and start selling off and that's the wrong time to do that. it's a technical malfunction in the markets. th...

You really want to focus on, you can bet on the fear of the fear. in other words there's a number of mechanisms that track not only the vix, the sort of definition of how much anxiety is out there, you can counter that by investing in other products like pro shares, short vix, short term futures, etf. a vehicle like that. and the velocity shares vix short term traded. they're mouthfuls. some of the companies pushing them, they had to stop it. people swarmed into these investments as a counter to the fear index. i can get lost in the weeds here myself. as many of you know, i'm boring on my own....

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