“Without the illusion from institutions like the Lazard Investment backed (Just research all their lobyists and connections with F&F, Franklin Raines, lol) Fannie and Freddie, the “derivatives” would not have existed in the first place”
Well that’s pure, unadulterated nonsense.
Derivatives developed in London, England, during the 1990s.
They are assumed to be a byproduct of the American mortgage market by those, like you, who don’t know that they are talking about.
Anyone interested in discovering how and why derivatives were developed by the financial industry can read Gillian Tett’s ‘Fool’s Gold’.
Regarding Lazard, you should try reading the applicable research paper before ‘informing’ us that they have been bought off by Fannie and Freddie. Sometimes it helps to actually do some research:
http://www.lazardnet.com/lam/us/tpd/pdfs/Inv_Research_Mortgage_Crisis.pdf
"The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups." Some guy who would be mocked today as being outdated muckety-muck.
Not hard to figure out what happened, Lol, the "evil" derivatives are basically based off loans where winners and losers = interest accrues thus full filling the contract early, then... full filling the contract never then..... The fact you are pimping this outfit makes me wonder since the winners and losers of the derivative markets were basically decided by before/and bailed out after, by government meddling along with their cronies in private industry (Whom Lazarus has its share with an unusual connection at F&F), not deregulation cause we all know the banking industry is hardly regulated at all. Heavy /s
What a concept, government/global economies complying "creating"/accepting too much "money" and promoting liar loans, not capital, in which absorption failed; caused a huge catastrophe. Who says Diocletian monetary reforms are dead?
There was a lot of sense in the Lazard/Lizard report, but spiking in order to downplay some political "interest" seems rather incomplete.
Without encouraging "affordable housing", investment managers would have a smaller pallet to work while they were creating the havoc