3 ms·
No. The heart of the crisis is people believing they can easily make money by investing in a product they don't understand. I can sell a CDO on CDS in Bitcoin
by un_montagnard 9y ago
No. The heart of the crisis is people believing they can easily make money by investing in a product they don't understand.
I can sell a CDO on CDS in Bitcoin, and make a lot of money while the buyers are all getting screwed. And they will be even more screwed as nobody will print cash to cover or limit their losses.
- stale2002 9y agoThe people who invested in CDOs SHOULD get screwed. The rest of us who weren't stupid enough to do that shouldn't be forced to cover their losses. That's the point.
- wuliwong 9y agoWhat you are describing is a moral hazard. A situation where people will take risks they wouldn't normally take because they know they will be bailed out if they lose money.