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Hitting Up California, NPR Gets Into the Toxic Asset Game

Apparently, toxic assets are available for trade once again. NPR reporters Chana Joffe-Walt and David Kestenbaum try their hand at it for a story. Joffe-Walt and Kenstenbaum are working with a former Wall Street trader who keeps directing them to bonds tied to California mortgages, including a bond called "California McMansions." "A lot of the people in our bond are really struggling... At some point those homes will be taken over and sold for a loss. Every time that happens, the bond shrinks. Eventually, our part of the bond will disappear entirely. Until then, we get a little money every month from people paying off their mortgages. We just got a check for $141." The journalists vow to give any profits to charity, and to eat any losses themselves.
· We Bought a Toxic Asset, You Can Watch it Die [NPR]