Housing Crash Redux: Collateralized Debt Obligations Came Back And Nothing Happened
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Supposedly, collateralized debt obligations (CDOs) were at the heart of the subprime mortgage crisis. Complex derivatives turned a medium-sized problem into a massive one. And it was various deregulatory maneuvers a few years prior, starting with the Gramm-Leach-Bliley Act (GLBA) in 1999, that enabled the world of financial derivatives to flourish.
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