this post was submitted on 02 Dec 2024
982 points (98.7% liked)
memes
10673 readers
2514 users here now
Community rules
1. Be civil
No trolling, bigotry or other insulting / annoying behaviour
2. No politics
This is non-politics community. For political memes please go to !politicalmemes@lemmy.world
3. No recent reposts
Check for reposts when posting a meme, you can only repost after 1 month
4. No bots
No bots without the express approval of the mods or the admins
5. No Spam/Ads
No advertisements or spam. This is an instance rule and the only way to live.
Sister communities
- !tenforward@lemmy.world : Star Trek memes, chat and shitposts
- !lemmyshitpost@lemmy.world : Lemmy Shitposts, anything and everything goes.
- !linuxmemes@lemmy.world : Linux themed memes
- !comicstrips@lemmy.world : for those who love comic stories.
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Those mortgages were priced incorrectly because the derivatives market inflated their value. There were other factors that contributed certainly. The credit rating agencies certainly played a critical role, but they were incentivized to inflate their rating because of the MBS market.
The regulation of these markets was also to blame, and that's a whole other can of beans, but again this was due mostly to the revolving door between the regulatory agencies and the investment funds that profit from lax regulation of the derivatives market.