Greenspan Highlights Risks of Securitization(Affirmative Action Mortgages ruined the economoy)

The Risk Center ^ | Monday, April 12, 2010 | Shahin Shojai

[thouworm]

ah, interesting

“Derivatives bailout”

I have looked and looked for current graphs and updated information on the “hundreds of trillions” in the derivative “timebomb” positions. Scores of articles in 2008 and going back to 2002, but nothing that illuminates the current status of these “financial weapons of mass destruction.”

Please ping me if you see anything illuminating on this.

[supercat]

IMHO, the bubble may or may not have gotten started had rates been higher, but it certainly could not have been sustained nearly as long. Since much of the destruction of wealth in a bubble happens near the end of its existence, popping the bubble sooner would have saved a lot of people a lot of money.

Unfortunately, there was a deliberate effort to inject looser and looser credit to keep the bubble from popping. Was this a result of naïveté, or an effort to scam huge sums of money from the market?

[GOPJ]

Thanks for the ping.

[petercooper]

bttt