That sounds exactly like 2007 lol. The ratings risk assumptions and who rates them. not valuing 'unlikely' tail risk because 'no way people won't pay their mor

That sounds exactly like 2007 lol. The ratings risk assumptions and who rates them. not valuing 'unlikely' tail risk because 'no way people won't pay their mortgages' or the 'no way a virus will have force over 30% of the population functionally un/underemployed with no assistance.' And who owns the bonds? What happens when pensions, investors are hit? And who sells the derivatives and CDO 'insurance' and the meta CDO of CDO bets on the debt? My guess would be lots of bank on bank, institution on institution incest. And presumably they have to keep these assets on book at least for a bit in order to structure the tranches or whatever the credit card version of that is. I love the film Margin Call, this scene is great: "Well... sir... if those assets were to decrease by just 25 percent, and remain on our books... well... that loss would be greater than the current market capitalization of this company." "the music appears to be about to stop and we are going to be holding the biggest bag of stinking shit ever assembled in the history of capitalism?" "the music, so to speak, just slowing, if the music were to stop, as you put it, then this model would not be even close to that scenario. It would be considerably worse." " and I'm afraid... standing here tonight... that I don't hear... a... thing... just silence.