I know this is maybe outdated but I am revisiting the 2008 crisis and the market's tendencies during such a time. When Michael Berry approached the investment banks and asked them to virtually create credit default swaps for hundreds of millions of dollars, how could these banks not be suspicious and dig more before approving? At any given time, there are always investors saying the market will plunge tomorrow, but how many times do people put millions to back their claim up? It's easy to write off the banks as being too "stupid" in hindsight and were blinded by the commissions they made on mortgage-backed securities, but why didn't Berry's swaps raise more of a red flag than they did?
Submitted June 08, 2018 at 02:33PM by seanmcnally1 https://ift.tt/2kWo7AD
