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No, they sold those too. Look up CDO and CDO squared to see where those things went. That said, super senior subprime mortgage binds did exceptionally well as i
by wheaties 11y ago
No, they sold those too. Look up CDO and CDO squared to see where those things went. That said, super senior subprime mortgage binds did exceptionally well as investments. It was the BBB stuff which had near 100% loss.
- yummyfajitas 11y agoCDO^2 was a minor part of the market, and again is also a valid thing to do provided the assumptions are right. According to the "evil actor/information assymmetry" theory, the people closest to the mortgage issuance should have been the ones who survived the crisis best (since their information was the most accurate). In contrast, the dumb investment banks back in NY should have been hurt the worst. That's the exact opposite of what happened.
- crdoconnor 11y ago>According to the "evil actor/information assymmetry" theory, the people closest to the mortgage issuance Several thousand appraisers actually wrote a letter to Congress complaining that they were being pressured to inflate their home appraisals or face blacklisting. This went back to 1999.
- yummyfajitas 11y agoWhat, exactly, do you believe this proves?