U forget the bundling of all the lousy loans, so they could be Securitised and then turned into derivatives, that were supported by Credit Default swaps, that were never accountedfor/margined properly.
So when it blew, it blew everything, especially AIG and if they went so did Goldman etc.....That was why TARP was needed, to bail out the crooks on Fall st....and the middle class is still paying.
Biggest hiest in history and no-one jailed.....
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No, I didn't
"Banks were willing to go along with this due to what you referred to, the pooling of mortgages for seuritization, which took the credit risk from the bank and put it on the investor (in many instances foreign investors and borrowers who were not historically knowledgeable about US housing cycles). But this was tangential, not causative of the eventual crash. Mortgage pools were invented back in the late 70’s if memory serves as MBS Pools and was a legitimate investment if you understood the product."