How about the Many levels of Insurance Companies Insuring all these Bundled Mortgages? The Banks Knew these Mortgages were toxic,they knew there would be a Lot more Defaults ,so did Insurance companies, they began competing against each other,offering better and Better deals for insuring those Bundled toxic Gems.
Of Course the insurance companies themselves also Knew these were Bad Bets and therefore insured themselves against the Inevitable Losses that surely would Materialize.
All of them though NEVER thought they would all go bad at the same time,but guess what? They did,I have read that these losses were in the tens of Trillions of dollars,and that is where the entire world including Europe took the hit,and they did cause it by telling everyone these were highly rated Bundles. So that is where we are and we have yet to pay the real price,so Obama will get reelected and we are all going to suffer the Horrors
The analogy of driving 65 miles and going 27 times faster doesn’t yield 7,555 miles. 65 x 27 = 1,755