Monday, July 27, 2009

This is what AAA rated assets looked like before the collapse

Easy to understand why the crash happened when the owner of this shack was able to mortgage it for $108,000 which was double of the (already inflated) value of the “house”. This was considered a high risk debt, it was sliced and packaged with a lot of other high risk debts and sold as securities with AAA rating.

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