Another masterpiece by Matt Taibbi: http://www.rollingstone.com/politics/news/why-isnt-wall-street-in-jail-20110216?print=true His newest book, a collection of his financial articles from RS: Griftopia http://www.amazon.com/Griftopia-Mac...9953/ref=sr_1_1?ie=UTF8&qid=1298201780&sr=8-1
I saw this Jackass on real time with bill maher . All he does is blame the banks but not mentioning the fact that hedge fund managers pushed for the cdos so they could invest without having to wait months for actual mortgages to be made thus making the problem 50 times worse
It is like saying, this was a bad movie but not explaining why. Your response is highly questionable. Point out problems in the article and we are talking...
And why regulators have to allow everything what HF managers want?? Mind you, you were criticizing him on a completely different appearance. Did you read the article? Didn't think so....
Never said I did...I'm going off his televised interview he said the banks were knowingly selling junk mortgages but a majority of the blame needs to be put on the rating agencies. The mortgages themselves were not the problem the problem were cdos which allowed investing without having a real underlying asset so instead of buying a mortgage you bought a piece of paper betting on another piece of paper based on mortgages
Sure they were. These are the ones with the illegal worker with 25K annual salary getting a 600K mortgage... Hello???? Anyhow, your point is moot...
You are clearly missing the point sub prime was a small market it was blown up due to cdos. It's one thing when one mortgage goes bad its an entirely different story when one mortgage goes bad that 20 different people bet on
Are you saying each individual mortgage had a separate cdo attached to it? I guess I was under the impression that each cdo represented a bulk of mortgages, with a risk rating which represented that particular batch of paper. Bad assumption? You got me curious.
Each cdo was a batch but before the crisis hit you had hedge funds creating cds on custom cdos. So they were saying I want a cds on cdo made up of these 25 mortgages. In essence it was basically pick a mortgage and you could get a cdo on it