the problem was wall street mis-priced these subprime loans and thus didn't have a big enough equity trauche to absorb these higher defaults that are now likely to be happen. Granted if they had priced it right not nearly as much product would have been created, thus their underwriting fees would have been greatly reduced. See how this works.............
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Latest | Highest ratedBut Is Subprime Really the Issue? [View article]