Why Did the Mortgage Crisis Happen?
Submitted by Businomics Blog
Why did the mortgage mess occur when it did? The topic is prompted by a Fortune Magazine article which proposes a very naive reason:
“As margins shrank in traditional businesses like underwriting and brokerage, Wall Street looked for new places to make money,” says Louis Pizante, a former investment banker at Goldman Sachs and Nomura …. In the process the firms took imprudent risks to make big profits.”
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