The issue about CDOs and MBS, is that they were sold as collateralized, but then later "sorry, we meant uncollateralized".... because of the thinning of the colateral.
Should we not run loans like Bordeaux sellers do wine?
They have a rated first and 2nd growth, 10s of thousand tasters and negotiants review the wine at first, and then continually review the quality of the grape up to and after barreling and selling.
If we had straight forward finance, that had experts looking at the quality of the fundamentals every week, we would have avoided all the financial pain.
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The issue about CDOs and MBS, is that they were sold as collateralized, but then later "sorry, we meant uncollateralized".... because of the thinning of the colateral.
Should we not run loans like Bordeaux sellers do wine?
They have a rated first and 2nd growth, 10s of thousand tasters and negotiants review the wine at first, and then continually review the quality of the grape up to and after barreling and selling.
If we had straight forward finance, that had experts looking at the quality of the fundamentals every week, we would have avoided all the financial pain.
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