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Where do you believe 'The Big Short' places the blame?
by iaw 10y ago
Where do you believe 'The Big Short' places the blame?
- refulgentis 10y agoMortgage lenders, like Countrywide, who were selling predatory crap to banks that weren't questioning Countrywide enough, and had an unyielding faith in house prices always increasing. More doofus behavior than knowing malfeasance, at least, that's what I got out of the book? Clearly that's a minority viewpoint, perhaps I should re-read it...:X
- nl 10y agoI think the the more common impression from the book was that mortgage lenders were incentived not to ask questions, and banks were more than happy to take their offerings, repackage them, and resell them to dumb money. Many at the banks seemed to know what was happening: remember how the price wasn't dropping as fast as they expected? That was Goldman covering their position and refusing to make the market at a reasonable price until they were safe. The dumb banks for burnt of course.
- friendlygrammar 10y agoA bunch of greedy individuals cheating the system for their personal gain and misaligned incentive structures.