Snake Eating Its Own Tail

So you wonder how Wells Fargo manages to positive quarters in a row during the greatest credit crisis of all time. It’s easy. They have a ready-made buyer for any crap they want to sell at any price. Don’t believe it?

This borrower couldn’t pay and thus stopped doing so. This should generate a “NOD” (Notice of Default) and ultimately lead to foreclosure, right? It should result in an impaired asset which might be sold to some other company (at a discount), right?

It got sold all right – right at the “120 day” late point where Wells counts a loan as “defaulted.”

But look at who it got sold to…..

Wells Fargo has literally become a snake eating its own tail.