Dimon, now Summers: There's a liquidity problem (Why don't I trust these jerks?)

[mmonk]

25. They weren't considered junk bonds even though they were.

When interest rates are held by policy to low rates or yields to artificially boost stocks, bond investors who want to balance portfolios complained. So these bonds created with consumer debt and bundled with sub prime mortgages were created to give better yields to compensate for those rates by investment banks and then were pushed to be AAA rated. That is all the result of "self regulation" instead of true regulation and then institutions including banks invested heavily in them as did governments and their pension funds and what not. When it went bust, so did both bank to bank liquidity (because they knew what these institutions held and wouldn't lend to each other) and then we had the libor rate crisis. No more Jamie Dimons, Republicans, or Third Way Democrats for me. It wrecked my family and it's finances. The chance I will vote for either is zero from now on.