What wrecked the economy was a frenzy of low interest loans for housing to people who could not afford to pay them, plus packaging worthless bonds into Credit Default Swaps. What wrecked the economy was the SEC refusing to set rules for bond evaluations, as they had long done for stocks, and the rating agencies refusing to give CDSs low ratings for fear that the issuers would go to their competitors.
Sure, people on Wall Street created CDSs and CDOs.
Well we agree on this much.
