Banks’ Self-Dealing, Fake Demand Made Financial Crisis Much Worse

Over the last two years of the housing bubble, Wall Street bankers perpetrated one of the greatest episodes of self-dealing in financial history.

Faced with increasing difficulty in selling the mortgage-backed securities that had been among their most lucrative products, the banks hit on a solution that preserved their quarterly earnings and huge bonuses:

They created fake demand.

Read more: Global Financial Crisis, Housing Bubble Fake Demand, Financial Crisis Housing Bubble, Banks, Financial Crisis, Banks Housing Bubble, Big Banks, Housing Bubble, Banks Fake Demand, Business News

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