The Biggest Risk to the Stock Market? The Illusion of Liquidity?
May 07, 2010 at 12:41 PM EDT
Lets reflect for a moment on the subprime mortgage meltdown. Why did all those banks give loans to anyone with a pulse and why did institutions buy those loans? Because the spreadsheets told them it was ok. Their models included “no way it will get this bad” default rates. Which was great, until [...]