Economy
How banks hide bad loans in shiny packages
HERE’S THE INTERESTING PART
When a bank holds a bunch of garbage loans they know will fail, they don't throw them away; they just blend them together. Collateralized debt obligations take thousands of high-risk debts, mash them into a single shiny package, and slap a premium rating on the wrapper. It is the financial equivalent of hiding expired ingredients in a heavily seasoned stew and serving it to the global market.
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