Author Topic: Nick Leeson outdone


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Nick Leeson outdone
« on: January 24, 2008 »
Whatever happened to the old adage "In order to borrow money, one must first prove that one doesn't need it"
It interfered with making money. A major part of the problem is that the banks which bought up the loans then repackaged them, and sold those on. They also used these bundles of loans as collateral for borrowing more money, in order to lend that money to yet more people. As a result, no one quite knows what they own, or how much it's worth. Think of musical chairs, played with an unknown number of people and lots of chairs which might be mirages. So long as the music keeps going, there isn't a problem. Unfortunately, the music has now stopped.