Originally Posted by flstf

But the terrible thing that has happened here is that these mortgages were bundled and leveraged to the point that the entire world's banking systems and economies are now failing all because of a real estate price correction. A correction that most halfway intelligent people knew was way over due. The people who are responsible for these derivatives, tranches, hedge funds or whatever they are called have done far worse than irresponsible borrowers. Instead of investors just taking a loss we must now go through world wide economic collapse.