the bulk of the crisis was caused by many, many people making good-faith, rational decisions which in hindsight proved foolish
I've been working in investment banking for a very long time now and this is simply not true. The whole trading floor knew exactly what they were packaging and selling and how this would eventually end.
Kitchen conversations prove everyone knew months before the crash.
Can you be precise about what they knew? Knowing a crash is coming isn’t necessarily that interesting - a crash is always coming, it’s just not clear on what time horizon, or what its secondary effects will be.
JumpCrisscross did make the interesting point that the “bankers were selling crap” narrative about the crisis is often overstated - the real reason that the situation was a crisis was the cascading liquidity issues, not so much defaulting debt.
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I've been working in investment banking for a very long time now and this is simply not true. The whole trading floor knew exactly what they were packaging and selling and how this would eventually end.
Kitchen conversations prove everyone knew months before the crash.
Can you be precise about what they knew? Knowing a crash is coming isn’t necessarily that interesting - a crash is always coming, it’s just not clear on what time horizon, or what its secondary effects will be.
JumpCrisscross did make the interesting point that the “bankers were selling crap” narrative about the crisis is often overstated - the real reason that the situation was a crisis was the cascading liquidity issues, not so much defaulting debt.