Why did the securitization of bundles as being aaa impact the resident – InterviewSolution

1.	Why did the securitization of bundles as being aaa impact the residential mortgage market so negatively during the 2008 financial crisis?
Answer» The subprime MORTGAGE CRISIS was CAUSED by hedge funds, banks and insurance companies. The first two created mortgage-backed securities. The insurance companies covered them with credit DEFAULT SWAPS. ... That caused the 2007 banking crisis, the 2008financial crisis, and the Great Recession.

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