As I understand it, the first MBS products were actually safe... (Reply #11)

In the discussion thread: The decline of “safe” assets [View all]

Wed Dec 14, 2011, 12:20 PM

11. As I understand it, the first MBS products were actually safe...

that is, they were composed of mortgages whose ratings weren't cooked. But there are only so many performing mortgages in the world, and when those ran out, our Galtian Overlords made the fateful (and probably predictable) decision to basically start Making Shit Up and constructing MBSs out of crap, and lying about their ratings.

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11 replies	Author	Time	Post
The decline of “safe” assets [View all]	dkf	Dec 2011	OP
That is startling.	Ruby the Liberal	Dec 2011	#1
Nominated for chart of the year.	westerebus	Dec 2011	#2
Could you please post the URL for the chart?	eridani	Dec 2011	#3
Here:	dixiegrrrrl	Dec 2011	#5
Great contribution the "savings" issue of earlier.	dixiegrrrrl	Dec 2011	#6
No such thing as "image inf0" in IE 8	eridani	Dec 2011	#8
Ohhhhhh...yes, I am using FireFox.	dixiegrrrrl	Dec 2011	#9
In IE	AnnaLee	Dec 2011	#10
Why were 'US private label structured products" (read 'mortgage-backed securities") ever considered	Owlet	Dec 2011	#4
I think they were considered "safe" because the Big Three ratings companies	Art_from_Ark	Dec 2011	#7
As I understand it, the first MBS products were actually safe...	phantom power	Dec 2011	#11

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