Yeah, bundling risks together doesn’t change the overall risk. It just makes you more likely to see the average case. The math behind this isn’t new since 2008.
But the people who were supposed to watch for that were instead watching for their chance to get a sweet job at one of the companies they were supposed to be regulating and Bush and Obama worked very hard together to make sure none of the banks suffered for their fraud or not doing their due diligence other than a couple of sacrifices (that might have been more of a consolidation than a sacrifice). The whole thing is rigged and it’s not so much that those in power don’t care as they are in on it.
You could say the same about the whole financial “industry”.
The entire idea of bundling debt is testament to that.
Yeah, bundling risks together doesn’t change the overall risk. It just makes you more likely to see the average case. The math behind this isn’t new since 2008.
But the people who were supposed to watch for that were instead watching for their chance to get a sweet job at one of the companies they were supposed to be regulating and Bush and Obama worked very hard together to make sure none of the banks suffered for their fraud or not doing their due diligence other than a couple of sacrifices (that might have been more of a consolidation than a sacrifice). The whole thing is rigged and it’s not so much that those in power don’t care as they are in on it.