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

To: RMF who wrote (960641)	9/1/2016 1:54:01 AM
From: i-node	1 Recommendation Recommended By FJB Read Replies (1) \| Respond to of 1575177

>> I believe it was the "bundling of mortgages" that really caused the crash. Bundling of mortgages is necessary. It has been done for as long as I remember. These were NOT essentially government institutions. They are private corporations with guarantees by the federal government. This is what caused the crash. The key moment was after Clinton had cut the lending requirements for banks, when the GSEs followed suit. This, along with the massive exposure on unregulated derivatives, assured a crash (another problem which Clinton & Rubin were warned about, but instead of following advice, simply shot the messenger and fired her). The bundling of mortgages (what we used to call CMOs) is necessary when you're going to issue package of mortgages and sell them. There really isn't any other way of doing it. While it is okay to trade futures and options on these packages of mortgages as a hedge, trading them for speculation, unregulated, is dangerous. When these positions go bad they collapse quickly (if you ever traded stock options you know what I'm saying). I don't blame it all on Democrats, because Republicans had the chance to stop them and didn't do it.