The collapse was inevitable from "summary" of The Big Short by Michael Lewis
The collapse was inevitable. It was the result of a perfect storm of greed, ignorance, and unchecked risk-taking. Wall Street was like a giant casino, with traders placing bets on the housing market without fully understanding the risks involved. The subprime mortgage market was built on a house of cards, with lenders handing out high-risk loans to borrowers who had no chance of paying them back. These loans were then packaged into complicated financial products that were sold to investors around the world. Meanwhile, the credit rating agencies were giving these products top ratings, despite the fact that they were filled with toxic assets. The banks, eager to make a quick profit, continued to buy and sell these securities, ignoring the warning signs of an impending disaster. As housing prices began to fall and borrowers started defaulting on their loans, the entire system started to unravel. The banks were left holding billions of dollars in worthless assets, and the financial markets went into freefall. The collapse was inevitable because the system was fundamentally flawed. It was based on a culture of short-term profits and excessive risk-taking, with little regard for the long-term consequences. And when the bubble finally burst, it was ordinary Americans who paid the price, losing their homes and their savings in the process. In the end, the collapse serves as a cautionary tale of what happens when greed and ignorance are allowed to run rampant in the financial system. It was a wake-up call for Wall Street, but one that came at a great cost to the American people.
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