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To: Toddsterpatriot

Yep. There is no discounting the role of gov’t in creating demand for these loans. And at the same time you had shadow banks farming the subprime sector in their own hunt for yield when they were getting essentially no return on their usual investments. None of them appreciated the amount of risk that they were involved in.


65 posted on 07/23/2016 4:37:39 PM PDT by Pelham (Best.Election.Ever)
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To: Pelham
Yes, with the GSEs demanding such a huge amount of these loans, there was a race by everyone else to get their own.

Enough so that there was demand by some Goldman customers for synthetic MBS.

66 posted on 07/23/2016 5:36:59 PM PDT by Toddsterpatriot ("Telling the government to lower trade barriers to zero...is government interference" central_va)
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