Originally Posted by Guest

What so many seem to forget, is that loans made to high-risk/subprime borrowers (because the banks weren't hanging on to them)..... were then sold to the financial market as relatively safe investments.

The fact that derivatives/CDO's/subprime mortgage-backed securities (MBS), were invented to try and hide dog chit, by wrapping it in sirloin and then being sold as all sirloin...was the crux of the problem.

Had the major ratings agencies done their job, then high-risk loans would have been properly rated and the market would have dried up...thereby reducing the number of those types of loans given to those who couldn't afford them.



The biggest failure of Obama's administration in my mind, is that not enough of these scumbags went to jail.




CNM