The Wall Street Mess Culprit (as we suspected) is SPECULATION
First, a definition: Speculation is the process of taking large risks, gambling, with the hope of winning big.
Miranda Marquit wrote a brilliant blog post about CDS’s as the culprit behind the current financial mess. But these CDS’s (Credit Default Swaps) are just the vehicle. The real culprit is SPECULATION. Here is how it has played out:
The CDS’s allowed banks to make riskier loans and pass off those risks to someone else. From The Market: The idea, of course, [of the CDS's] was to encourage more and more risky investment. And, of course, pump up Wall Street profits and allow for …read more
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