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The 2008 Financial Crisis Explained

Civics 101

00:00

The Investment Banks Are Buying a Lot of Risky Mortgages, Right?

In the early 2000s, investment banks were buying a bunch of quote unquote risky mortgages. The ratings companies started rating these mixed bag bonds as triple A's even if they had a bunch of risky mortgages in them. "It's building houses on sand, literal houses," says John Avlon.

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