ShackledNation
Libertarian
When did I say they were?First of all, cite sources. Second of all, what does the number of homes in default have to do with the points I raised? Government and the Federal Reserve caused such bad derivatives to be favorable in the market. These derivatives were largely based on the housing market and mortgage loans. When the housing market bubble popped, the absurdity of these derivatives was revealed. Had the housing bubble never been created by the government such derivatives would never be profitable anyway.Only 6% of homes were in default when the system collapsed.
Nice try, though.
The $516 TRILLION DOLLAR derivative bubble is what brought down the economy.
Just to give you an idea of how big a bubble that was, the GDP of all the economies in the world in one year is $50 trillion.
There could be no collapse of the derivatives market without the rise. And the rise was wrongly caused by government. The market in derivatives should never have existed in the first place. Fannie Mae and Freddie Mac subsidized such derivatives. The government essentially encouraged bad loans and investments.
FYI, bundled mortgages are not derivatives.