Supposedly, collateralized debt obligations (CDOs) were at the heart of the subprime mortgage crisis. Complex derivatives turned a medium-sized problem into a massive one. And it was various deregulatory maneuvers a few years prior, starting with the Gramm-Leach-Bliley Act (GLBA) in 1999, that enabled the world of financial derivatives to flourish.
The housing and stock markets are both in dire straits but for different reasons (I’m in Texas btw). Id love to hear your view of where we are heading next.
Housing Crash Redux: Collateralized Debt Obligations Came Back And Nothing Happened
Great piece. Informative and well written.
The housing and stock markets are both in dire straits but for different reasons (I’m in Texas btw). Id love to hear your view of where we are heading next.