Wednesday, February 8, 2012

Banking, Housing and Mortgages

The Rumor Mill News Reading Room 

Banking, Housing and Mortgages
Posted By: SARTRE [Send E-Mail]
Date: Wednesday, 8-Feb-2012 05:27:42

The primary players that caused the housing bubble are:
1) The banking institutions that bundled and sold very risky mortgages
2) The Wall Street firms that bought these instruments and hedged for a default hazard by booking speculative derivative insurance that could never pay off on massive defaults
3) Fannie Mae and Freddie Mac provided government backing, of last resort, on bad mortgages
Read the entire article
http://www.batr.org/negotium/020812.html
Discuss or comment about this essay on the BATR Forum
http://forum.batr.net/showthread.php?tid=2098

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