Yeah, I get that. Derivatives did not cause people to take out loans they could never repay or charge debt to credit cards they could never afford. Derivatives work if the underlying assets are good, but when everyone bets the wrong way on the underlying assets (e.g. home values will rise and mortgages will be repaid) the system falls apart. Derivatives are part of the problem, but not the root of the problem. Take away the derivatives and you still have millions of people losing their homes and defaulting on credit cards, sending the economy into a recession.
On Tue, Feb 3, 2009 at 1:02 PM, Gruss wrote: > > > RoMunn wrote: > > > > Derivatives - of mortgages. > > You couldn't be more wrong. That's simply the fact. > > Mortgage-backed securities have been around since the Johnson > administration. > > Take a look into swaps. > > Then take a look into "credit" > > Then realize that mortgages are only one type of credit. > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:287250 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
