The subprime mortgage industry was riddled with corruption from "summary" of The Big Short by Michael Lewis
The subprime mortgage industry wasn't just flawed; it was corrupt to its core. To say that it had a few bad apples would be an understatement. The entire barrel was rotten. The people running the show didn't just turn a blind eye to shady dealings; they actively encouraged them. From lenders to investment banks, everyone was in on the scheme. It wasn't just the borrowers who were being taken for a ride; investors were being duped as well. The mortgage-backed securities being sold were like ticking time bombs, waiting to explode and take down the financial system with them. But no one seemed to care as long as the money kept pouring in. The rating agencies, whose job it was to assess the risk of these securities, were either incompetent or complicit in the fraud. They gave top ratings to securities that were essentially worthless, lulling investors into a fa...
Similar Posts
Financial engineering involves creating complex financial products
Financial engineering is a practice that involves the creation of complex financial products. These products are designed to me...
Ratings agencies failed to properly assess risk
The rating agencies were supposed to assess risk. They were supposed to decide how risky bonds were. They failed spectacularly....
The lessons learned from the collapse
The collapse of the housing market in 2008 revealed some hard truths about the financial industry. One of the key lessons learn...
Corporate accountability and responsibility
The notion of holding corporations accountable and responsible for their actions is a critical theme in "Too Big to Fail." Thro...
The housing market turned out to be a house of cards
The housing market was a place where illusions were created and perpetuated with the help of faulty assumptions and wishful thi...
A lack of financial literacy contributes to the susceptibility to market manias
The notion of financial literacy is of considerable importance in understanding the dynamics of market manias. When individuals...