>>A polite summary would do much better.
AAA Rated CDO’s - ( Collateralized Debt Obligations ) were manufactured via the Subprime Securitization process. Significant portions of the underlying loans were tied to LIBOR instead of the American FED’s Prime.
Subsequently, round about 2007+, it was discovered that significant numbers of those AAA CDOs were not really AAA worthy - and were rapidly downgraded to Junk status, precipitating the banking crisis of 2008. Hence the term “A$$Paper” in reference to to associated Asset Backed Securities.
In the mind of most reasonable folks, the amoral deception by which those overrated securities were manufactured and sold constitutes fraud.
Enter Tarp, QE1, QE2.. and the bailout of the perpetrators at the expense of everyone whose wealth is dependent upon the value of dollar.
Etc Etc.
Click the Links. Nothing there to bite you except the Truth.
Ah, now that something sensible to discuss. I can see a context.
Without spending lots of time recalling minute details, my take was that due to gov’t-compelled sure-loss loans (to wit mortgages unlikely to be repaid), banks had to invent a new process for insuring such high-risk loans; plethora of acronyms for misunderstood terms aside, upshot is that everyone involved was confident the lenders-insurance system was a solid AAA worthy construct.
Until everyone realized everyone was, in effect, insuring themselves with nothing. AAA -> junk status overnight.
Not so much fraud as doing government’s will under duress, and concocting some way to make it work, which it can’t and doesn’t. Subsequent repair of “progressive” damage is very, very expensive; at some point the rate of quantitative easing will be unable - at _any_ rate - to keep up with demands for payback. A run on dollars will ensue; hyperinflation occurs when there is simply not enough value in the system to satisfy current obligations.
Casting blame doesn’t help at this point. There just isn’t enough value in the system to satisfy obligations as they occur. Result: crash; those whose wealth depends on the value of the dollar won’t have any.