Mortgage-backs are the root of all evil

Essay from the year 2010 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: A, Indiana University (Kelley School of Business), course: Commercial and Investment Banking, language: English, abstract: This discussion paper was written for a "e;cat fight"e;, i.e. class discussions. During this "e;fight"e; the author argued that mortgage-backs are the root of all evil. The paper includes three main reasons to support this opinion: The behavior of rating agencies, the behavior of banks and the housing bubble.