Thom is absolutely correct that the origin of the problem was the CDS's

The asset bubble in RE market could never have existed without the CDS market an in fact the investments banks (Lehman and Bear Stearns in particular) were the ones who created subprime/Alt A loans and continued to erode tradition UW guidelines BECAUSE they could turn around and package these risky loans and make shitloads of money selling the CDS's . Around 2005 is when hedge funds started figuring out that they could game the system (and btw - the system was the totally unregulated CDS market) and create pools of loans that were intended to fail so that they could make shit loads on money on the CDS. Propublica had some good info on this.

AGAIN - without unregulated CDS's the submprime/Alt A market would have never gotten as fatally big as it did and the "crash", if we even had one, would have been much smaller


Add comment

Login or register to post comments

Come Cruise with Thom Hartmann in July 2020

Join me for an exciting Bermuda getaway aboard Oceania Cruises, the world’s leading culinary and destination-focused cruise line. Set sail on the reimagined Insignia for 7 nights beginning July 25th 2020. Take advantage of Oceania Cruises’ OLife Choice promotion, where you can choose shore excursions, a beverage package, or onboard credit – Oceania Cruises also includes Wifi! You'll also receive complimentary gratuities, a $50 onboard credit and two exclusive cocktail parties. Did I mention we are planning special onboard events with yours truly? Prices start at $1199.

Reserve your stateroom today by contacting Keene Luxury Travel, and mention the Thom Hartmann Group 800.856.1155

or go to

Why Hasn't Congress Taken War Powers Away From Trump?

Thom plus logo Donald Trump's pathetic betrayal of our Kurdish allies in northern Syria highlights the importance of Congress taking seriously it's constitutional obligation to define and authorize war.