re: #437 engineer dog

i suspect that a smaller problem of an epidemic of subprime lending was greatly magnified by the invention of securitized mortgage instruments. the advantage of these to society is that the banks that made the original loans can sell them off and use the money to make more loans. this is also their weakness

Even the name is wrong. “Securitized” my ass. Just a sales-trick, because nobody would buy crap that would appropriately be called “Insufficiently Collateralized Debt Obligations”.

This whole process of misleading investment schemes being conflated with traditional low-profile lending businesses, of course, also points to the repeal of Glass-Steagal…