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by qeternity
1494 days ago
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> Toxic mortgage-backed CDOs didn't have to become a systemic risk in the first place. The problem had nothing to do with CDOs. No matter how you slice and dice risk, you never increase/decrease it. Someone would have owned the underlying MBS. The issue was that the Blue Dog Democrats in the 90s decided with Alan Greenspan that homeownership should be incentivized. This created a housing bubble which ultimately is what caused the GFC. |
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