It’s been rigged for YEARS. During the 2008 crisis, it was like there was a tank of money over the top of it keeping it all from imploding.
This has been the message to the big companies - get in bed with Uncle Sugar, and we’ll take care of you, if you do what we ask.
Of course its rigged. The entire MBS crisis was ENGINEEERED by PUBLIC POLICY - HOME OWNERSHIP IS A RIGHT!!
The banks said, “Fine, we’ll write the loans you’d otherwise put us in jail for making, and you let us sell them to Wall Street, who will package this reeking bag of shyte into securities, and the entire thing is subsidized by the risk market using Fannie as the underwriter.”
“Done!”, cried both sides of the aisle, and the market went to Pluto - prosperity without end.
Blackpoint used CDS’s to short the entire economy. Those got packaged up into CDO’s, and as soon as the writing was on the wall - that your $14K/year illegal alien strawberyy picker was going to default on the three $750K mortgages he was carrying, the smart money knew that there was more to be made in seeing the people holding the paper defaulted.
And that was it. For a while it looked like FedGov would find a way for the big banks to weasel on the CDS and CDO leverage, but that was a bridge too far for the market.
It still hasn’t unwound, and won’t for another 30 years or so. Next three generations are going to be big renters. Big ones.
Section Eight Nation. That’s where we are headed.
This would be interesting if it was even remotely relevant to the topic...