What the fuck is a Synthetic CDO?

[Anonymous No.17890312]

[Anonymous No.17890367]

>>17890312

[Anonymous No.17890377]

this guy plays a smug bastard so well

[Anonymous No.17890415]

movie was such propaganda imagine saying derivatives created the housing bubble when fucking basal 2 made illegal for investment banks to sell mortgages and had to put more in mortgages for each dollar of profit

[Anonymous No.17890424]

>>17890312
ur anger is palpatine

[Anonymous No.17890448]

>>17890415
>when fucking basal 2 made illegal for investment banks
what?

[Anonymous No.17890457]

>>17890415
pls explain to brainlet

[Anonymous No.17890633]

>>17890448
>>17890457
BIS released banking regulation called basel II which meant investment banks had to hold a fixed % of their worth in mortgages. This is in effect is the same thing as saying it was illegal for them to sell mortgages, so it created a bubble in that there was as much demand for mortgages as there was profit being made in investment banks

the derivatives and short selling was the market correcting the bubble created by the regulation. Of course the banks would short themselves, they are profit seeking entities.
Without the capital constraints the banks would've just reduced their exposure to mortgages when appropriate

The real red pill is that financial repression is the point of Keynesian economic policy, they wanted it to happen. The film is just another piece of propaganda trying to convince you capitalism is evil, when the 08 housing crisis was caused by socialist banking regulation implemented by international institutes that you have no representation in

[Anonymous No.17890722]

>>17890633
Eh

it was a mixture of everything, low-interest rates, Prop trading desks, overleverage, blatant fraud and the basel 2 and heaps more I just can't be fucked to type them out

putting blame on one or two things is stupid.

[Anonymous No.17890725]

>>17890633
>Another banks dindu nuffin post
Mega cringe bro

[Anonymous No.17890767]

>>17890722
the regulation is the cause. everything else is downstream
>>17890725
not an argument

[Anonymous No.17890889]

>>17890767
Neither is my dick in your ass but it's still gonna happen

[Anonymous No.17891052]

>>17890767
If you're going to say regulation was the cause then you can also admit that retard ratings agencies were 100% compliant with inflating the bubble by signing AAA ratings on every CMO that came their way.

[Anonymous No.17891220]

>>17890415
english, doc

[Anonymous No.17891248]

>>17891052
of course they were, they're part of the regulation.

ratings agencies are antithetical to a market regardless of this situation, a market tells you the value of something.

[Anonymous No.17891264]

>>17890367
Underrated post

[Anonymous No.17891268]

>>17890889
>starts talking about gay sex
standard socialist

[Anonymous No.17891843]

>>17891268
why yes, I am a socialist

[Anonymous No.17892290]

>>17891268
Come on baby you know you want some

[Anonymous No.17892470]

>>17890367
. .. wait I think I got it

>yo
>yoyoyo
>yo dawg
>so I heard that u like dat CDO shieet
>so I was like
>hey man lemme put a couple o' CDOs in a CDO know what I mean dawg?
>so yeahh I put CDOs in CDOs in CDOs
>Call it a Cube
>Like that Saturn stuff all them L.A. rappers be like

[Anonymous No.17893810]

I've heard they are filming big short 2.

[Anonymous No.17894378]

>>17890312
i hope to be this smug one day

[Anonymous No.17894448]

>>17890767
>nblot un argument hurrdurrhurr
>regulations come from Satan and if you believe in them you go to hell
Get off of /biz/ retard. The world is more complex than your simple mind can handle. Some of us are trying to make real money here. Nothings good or bad, just tradeoffs that can be arbitraged for profit.