The Troubling Return of Credit Bubble Factors Like CDOs
Data point No. 1: Banks are back to hawking complex derivatives that magnify bets on corporate debt. Data point No. 2: For the first time since the financial crisis, JPMorgan Chase is set to resume selling securities tied to home loans that aren’t backed by the government. Add a third development—the feverish revival of the U.S. housing market, with new home sales surging to levels not seen since August 2008—and a meltdown-minded observer could reasonably get to thinking, Here we go again.
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