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Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (8650)1/29/2017 3:47:00 PM
From: neolib  Read Replies (1) | Respond to of 361308
 
How about outright fraud like GS shoveling diced mortgages out one door while betting against them at the other door? That is what unregulated free markets do, and what people who support them never acknowledge.



To: combjelly who wrote (8650)1/29/2017 3:51:14 PM
From: i-node1 Recommendation

Recommended By
TimF

  Read Replies (1) | Respond to of 361308
 
>> No, it was the wide use of credit default swaps and like derivatives.

Never would have happened without GSEs.

Credit card debt is unsecured. So, no, it couldn't really have happened.

The problem is when the underlying market sinks below the loan value on the property and equity is too small. In that instance, owners will consistently choose to walk away from the property. THAT is what caused the problem.


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