4 ms·

So what's the difference this time around? I can't imagine they're going "remember that investment product that crashed? Please buy it again. "

• gigatexal 7y ago
  The fall will be even larger.
  • gigatexal 7y ago
    People think that greed and an infinite backstop (the fed backing Fannie Mae and Freddie Mac guaranteeing ~50% of the US mortgages that these MBSes are made up of) is going to end any differently? I doubt it. It will just be bigger because the government mandated that they have larger reserves, they didn't mandate they change they way they think about capitalism or greed, etc. If you had a VC behind you with trillions that would fund your every idea even after you burned many untold billions you wouldn't change your thought process either, it's no different here in my opinion. And that opinion might be jaded or unrealistic but I don't think I am that far off. I don't have much faith in the measures that have been taken to prevent another 2008 style crash.
• dagw 7y ago
  They're probably going "remember that investment product that made you a fuck-ton of money right up until the crash? Please buy version 2.0"
  • chii 7y ago
    and get in early, and cash out while the goings' good, and let the late suckers fall. Even pyramid schemes are profitable at the beginning!
• mruts 7y ago
  All securities have exposure to something that can result in them crashing. Despite this, people are still buying them. It would be pretty ridiculeous to say “remember the Great Depression? Don’t buy any stocks! It’s a scam!” So what’s the difference with MBSs? Also, what exactly about MBSs do you think makes them fundamentally unsound investments?