Comments on: Money as trust http://www.christopherspenn.com/2009/01/30/money-as-trust/ Thu, 18 Mar 2010 16:17:47 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: JhonGalindo http://www.christopherspenn.com/2009/01/30/money-as-trust/comment-page-1/#comment-3800 JhonGalindo Sat, 28 Feb 2009 07:13:33 +0000 http://www.christopherspenn.com/2009/01/30/money-as-trust/#comment-3800 Nice Article. thanks For The Interesting information. I really enjoy it. Nice Article. thanks For The Interesting information. I really enjoy it.

]]> By: Monty K. Williams http://www.christopherspenn.com/2009/01/30/money-as-trust/comment-page-1/#comment-3707 Monty K. Williams Sat, 31 Jan 2009 15:00:59 +0000 http://www.christopherspenn.com/2009/01/30/money-as-trust/#comment-3707 Amazing article and soul accurate. Good read! Amazing article and soul accurate. Good read!

]]> By: Ilija http://www.christopherspenn.com/2009/01/30/money-as-trust/comment-page-1/#comment-3706 Ilija Sat, 31 Jan 2009 06:17:00 +0000 http://www.christopherspenn.com/2009/01/30/money-as-trust/#comment-3706 Actually, the current US and global economic downturn is not a direct result of misrepresentation of the value of real estate. <br><br>It's caused in large part due to the wrapping up of subprime(risky) mortgages into mortgage-backed securities incorrectly rated AAA(safe). This created a bubble that US and International investors helped to inflate by investing in these supposedly-safe securities.<br><br>The actual losses incurred due to subprime mortgages are a drop in the bucket compared to the catastrophic and far-reaching losses sustained when this bubble burst.<br><br>So this current crisis was not caused by poor people who can't pay their mortgages. It was caused by credit rating agencies misrepresenting the risk of mortgage-backed securities. Actually, the current US and global economic downturn is not a direct result of misrepresentation of the value of real estate.

It's caused in large part due to the wrapping up of subprime(risky) mortgages into mortgage-backed securities incorrectly rated AAA(safe). This created a bubble that US and International investors helped to inflate by investing in these supposedly-safe securities.

The actual losses incurred due to subprime mortgages are a drop in the bucket compared to the catastrophic and far-reaching losses sustained when this bubble burst.

So this current crisis was not caused by poor people who can't pay their mortgages. It was caused by credit rating agencies misrepresenting the risk of mortgage-backed securities.

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