The GFC and Its Preconditions Were Highly Leveraged and Absurdly Highly Rated

This time around, i see no analogue to sub prime mortgages and m b s in terms of their combination of fragility and magnitude. The structured mortgage vehicle s were highly levered and absurdly highly rated. And the risky tranches ended up in banks portfolios, causing them to require rescues. A hard landing and substantial devaluation in china, the world's second largest economy could have far reaching effects.