Excerpt from Business Week "A Smart Idea Spoiled: In his first interview since the crisis began, Lew Ranieri, inventor of mortgage-backed securities, says the system can be fixed"
There's an old Wall Street adage that there's a nexus between fear and greed. If you diminish fear, you get more greed. People got braver issuing (mortgage backed securities) this stuff. All the participants felt they could act merely as agents and collect fees. Nobody was prepared to say "I have liability."
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