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Originally Posted by Snake Doctor
They invested in collaterallized debt obligations (CDO) which contained, or were made up mostly of, mortgage backed securities.
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Yep.
Quote:
Originally Posted by Snake Doctor
If these investors didn't do their due diligence then that's their own damn fault. We don't bail out people who buy corporate junk bonds, we shouldn't be bailing out these folks either.
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You do realize that the reason some of them are being bailed out is the welfare of the economy as a whole, right?
Bear Stearns, for example, wasn't saved because people felt sorry for it. It was saved because letting it collapse could have triggered a domino effect, ultimately leading to economic meltdown.
Quote:
Originally Posted by Snake Doctor
If rating agencies such as Standard and Poor gave AAA ratings to subprime mortgage-backed securities, then I'm sure there's a class action lawsuit in the works.
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Alas, standardized procedures cover their collective asses. Besides, if Standard & Poor's and Moody's went under, the whole financial system would be pretty much screwed.