The Nomad Economist: What’s Really Causing the Financial Crisis

The Nomad EconomistPremiered May 17, 2022 Arguably, the financial crisis was caused in large part by something called a collateralized debt obligation, or CDO. The global financial meltdown, at the cost of over $20 trillion, resulted in millions of people losing their homes and jobs in the worst recession since the Great Depression, and nearly resulted in a global financial collapse. This is the toxic financial product (i.e., CDO – Collateralized Debt Obligation). Mortgage-backed securities (MBS) and collateralized debt obligations (CDOs) are different concepts with frequent overlap between them. MBS are investments that are repackaged by small regional banks as…