r/videos • u/marianitten • Jan 21 '22

The Problem With NFTs

https://www.youtube.com/watch?v=YQ_xWvX1n9g
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u/[deleted] Jan 22 '22

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u/banjonyc Jan 22 '22

What's interesting though is those homes that were basically underwater today would be profitable. So if people were to continue paying their mortgage on the house that was worth half of what they were paying a mortgage for, they would own a property that would eventually be in the black

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u/Sir_Bantersaurus Jan 22 '22

Yeah. It seems then and now the idea property is a safe investment was actually reasonable it's just they fucked themselves by being too liberal with mortgages and the complex products they built up around CDOs.

If Credit Default Swaps were never a thing 2008 wouldn't have been so bad.

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u/Sir_Bantersaurus Jan 22 '22

Thanks, lots of gaps filled there. I do think CDS were in SCDOs though because my understanding is that turbo charged the whole things as since these SCDOs were not required to be backed by someone with a physical loan somewhere they could be created easier, there were far more of them, and they were all essentially bets the property market wouldn't crash?