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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (422174)	10/3/2008 6:15:05 PM
From: TigerPaw	Read Replies (1) \| Respond to of 1572079

The critical characteristic was that high risk loans were being insured and sold as low risk loans but there was no capital to back up the insurance. The same problem would have existed no matter what high risk investment was being backed by phony insurance. It may be that mortgages happened to be the category that started making claims on insurance first, but that doesn't mean they are the root cause of the crisis. The root cause is the phony insurance that could not pay on claims, the trigger was the mortgages. TP