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Sunday, June 29, 2014

RE MORTGAGE BACKED SECURITIES CRASH 2007 2008

I have heard some people claim, while railing at the big banks, that they were responsible for intentionally engineering this debacle.

While I am more critical of how things have gone financially than most others, this account is not after all how it happened.

The big banks did not anticipate this development.

The big government underwriters of mortgages did not anticipate this development.

Michael Lewis' account in The Big Short makes this crystal clear.

If big Wall Street banks had intentionally engineered this crash, I would think that Michael Lewis would be among the very last people not to say so, given that he had written Liar's Poker, after all.

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