Straczynski: "The New Aristocracy"

[BobbaBoosh]

@some_guy

It’s only when they found they could shuffle that risk into derivatives and trick other banks into buying them that suddenly sub-prime mortgages took off

That S&L crisis back in the 80s featured mortgage-backed securities. If you want to see “them” at work, look back at what the press was saying while 2007-2008 crisis was unfolding. They acted like mortgage-backed securities where some new-fangled, never before seen thing.

@some_guy

I have a friend who bought a house in 2002, and the bank pushed hard for him to get a sub-prime mortgage when he qualified for a less risky loan, he resisted and still has his house.

How did the subprime package differ from the one he took? Variable rate?

Also, while we are on the subject of the 2007-2008 crisis. Who recalls that credit “reform” thing circa 2005 or 6? That was the pin that popped the housing credit bubble. IMHO.