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The scale and complexity of these new investments means that they don't just defy traditional economic rules, they may change the rules. So much of the world's capital is now tied up in this shadow economy that the traditional tools for fixing an economic downturn - moves that have averted serious disasters in the recent past - may not work as expected.
posted 9 months ago in finance22 views | 4 jaas | 1 save | reply )
"they owned huge quantities of these unusual new securities, called collateralized debt obligations, or CDOs."
New? CDOs and CMOs have been around since god knows when
replied 9 months ago50% match | 1 jaa | reply )
by joe
Invented in 1980, mainstream in 2001
replied 9 months ago50% match | 1 jaa | reply )

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