• @[email protected]
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    1 year ago

    You don’t have to trust banks to not shortsell the housing market with your own money (causing a recession for the entire world)

    The way I read this, it suggests that banks shorting the housing market with my deposits caused a global recession.

    You’re right about the ratings agencies (as far as I know, also from The Big Short), I was skipping over that for brevity.

    • @[email protected]
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      11 year ago

      At the very least it compounded it. But didn’t the banks that short it know the crash was going to happen? Why would an institution that large bet again the housing market, when the stigma was