The mortgage bubble, journalist Matt Taibbi told me, was essentially a gigantic criminal fraud scheme where all the banks were taking mismarked mortgage-backed securities, very, very dangerous, toxic subprime loans, they were chopping them up and then packaging them as AAA-rated investments, and then selling them to state pension funds, to insurance companies, to Chinese banks and Dutch banks and Icelandic banks. And, of course, these things were blowing up, and all those funds were going broke. By mismarked Taibbi means fraudulently overvalued.
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About Matt Taibbi
Matt Taibbi was a contemporary American author and journalist. Matthew Colin Taibbi is an American author, journalist and podcaster. A former contributing editor for Rolling Stone, he is the author of several books and publisher of Racket News. Read more on Wikipedia →