28 Keys to 2008
Clueless about why 2008 made the rich and poor, poor alike? Click on the bold words to learn their meaning (or better yet, here is a list) and then repeat after me…
The buy side thought mortgages made invincible asset backed securities. Mortgages were not created equally; they were not commodities. The bull market, lack of due diligence and aggressive investment style [eye-roll, mutter “Goldman”] clouded almost everyone’s view. Plus, lots of leverage with lack of worry about liability. The worst was the derivatives to cover the company’s, but not their client’s, asses. I mean assets….
(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)