Economy, asked by artivermalko7090, 1 year ago

Why did the securitization of bundles as being aaa impact the residential mortgage market so negatively during the 2008 financial crisis?

Answers

Answered by ajmal64
1
The subprime mortgage crisis was caused by hedge funds, banks and insurance companies. The first two created mortgage-backed securities. The insurance companies covered them with credit default swaps. ... That caused the 2007 banking crisis, the 2008financial crisis, and the Great Recession.
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