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The idea of lending money just so you can profit from its failure is caused by the affiliations between commercial and investment banks.
by joe_momma 6y ago
The idea of lending money just so you can profit from its failure is caused by the affiliations between commercial and investment banks.
- JumpCrisscross 6y ago> lending money just so you can profit from its failure is caused by the affiliations between commercial and investment banks Not really. Most lenders into this mess never made a dime on the shorting. And most of the shorts’ beneficiaries never loaned a penny. Short selling pre-dates Glass-Steagall. Credit default swaps predate Gramm-Leach-Bliley.
- joe_momma 6y ago"research suggests similarities between the lax way that home loans were signed in the run-up to the last crisis and the underwriting of many retail mortgages" https://www.nytimes.com/2020/08/24/business/mall-short-hedge-funds.html https://www.nytimes.com/2020/08/24/business/mall-short-hedge... And those home loans were allowed because Glass-Steagall was removed, is it wrong to think that although short selling has been around it has been exacerbated by the removal of Glass-Stegall into things like people's homes/livelihood and not just stocks?