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I'm not inclined to excuse the buyers of all the toxic junk in any way.

They could have know - should have known - what they were getting into. I saw a prospectus by Goldman Sachs for one of their Mortgage-Backed Securities salamis. There were 40 pages expalining in loving detail the risks for each tranche, including the possibility of a housing downturn.

People chose not to read these, or to ignore them.

Now, that the system pushed everybody in that direction is a reality, and a smart policy decision would be to change that system, but people still chose to follow the herd.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Wed Oct 1st, 2008 at 04:57:02 AM EST
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