Pam Martens: Has a Comedian Just Saved America?: "The security instruments were never the problem; how they were traded was the problem. For example, the mortgage and debt securities were, in reality, junk bonds but they were tradedas triple A. They were not traded on an exchange where price discovery would have shown them to be junk bonds, they were traded in an opaque over the counter market. In the case of credit default swaps, they were traded in a market created by the very firms who needed to hide for as long as possible (while executives reaped windfall compensation and bonuses) the dubious pricing of the securities and gargantuan amounts being issued."
Posted by orekdm at 15:09