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32. The Uptick Rule
8 months ago
30. Cramdowns
9 months ago
28. Write-downs
9 months ago
27. Mark to market
10 months ago
25. Toxic assets
10 months ago
23. Quantitative easing
11 months ago
19. How credit cards become asset-backed bonds
1 year ago
Mortgages aren’t the only financial instruments that get turned into securities. Marketplace Senior Editor Paddy Hirsch explains how companies make money by buying credit card debt and bundling it. More coverage of the financial crisis is at marketplace.org/financialcrisis

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  • Mark Urquhart-Webb 11 months ago
    OK, but .... When people miss payments or don't pay, the interest rate goes sky high - and in a lot of cases, the debt DOES get paid at the end, even if the debt gets sold off cheap to a collection agency so the RISK isn't that much is it? People worrying about their Credit Score makes sure of that!

    Also, What does happen when, in your end scenario, the champagne doesnt flow any more - some investors get burned (but they've factored that in with the level o risk they bought into haven't they??

    Mark 'Not an economic genius' Urquhart-webb
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