Im in the middle of arguing a related subject with someone right now. All he wants to do is blame CDOs (mortgage pools).
I don’t see how a CDO can be blamed when it is only has good as the mortgages that are put into it. It’s like blaming a home’s structural members for breaking, when the foundation was bad to start.
Stossel's special tonight goes a step beyond many reports I've seen, and for that he should get credit for being persistent.
It was the low interest rates that spurred lenders to loan, even to non-worthy borrowers, which created the bubble ultimately burst.
And I believe you can guess what mechanism created those unrealistically low interest rates . . .