4 ms·
what makes the whole article junk?
by exit 9y ago
what makes the whole article junk?
- ChuckMcM 9y agoIt ignores the whole cycle of leveraging and recycling that occured when weaponizing mortgage and asset backed securities into CDOs and insurance risk swaps. Sub-prime mortgages were the gasoline on that fire, they took what was perhaps a cabin burning in the woods and turned it into a 10,000 acre wildfire. With out sub-prime mortgages as an accelerator the who CDO mess burns out slowly and in when it starts burning the market moves away in a controlled manner. To discount or even disconnect the sub-prime lenders from that fire is disingenuous at best in my opinion.
- klenwell 9y agoPut another way: if you've seen the movie The Big Short, it's like they cut out all the Florida scenes. If you haven't seen The Big Short, it's still on Netflix.
- thinkcontext 9y agoNot the Florida scenes, they say subprime grew but it was still small compared to prime. The layering and diving and combining is the Jenga scene.
- dogruck 9y agoIt ignores the role of government in demanding the issuance of more sub-prime loans.