Quote:
Originally Posted by nomadking
Those that gave out the loans didn't create the CDOs. All the CDOs did is play "pass the parcel" with the bad debts. It didn't create the debts in the first place. Then there were those who messed around gambling against the various CDOs.
|
That’s why I differentiated between the loan-givers, and those who hid the bad loans in CDOs - two cheeks of the same arse (one set initiated the problem, the other hid the extent of the problem).
Those who played "pass the parcel" were the ones who brought the Financial System down, as they made it impossible to understand how bad the problem was, so panic ensued.