On Wednesday, March 17, 2021 at 10:04:25 AM UTC-4, wrote:

Clueless again.
The housing failure alone would have simply meant a lot of people got
evicted. The thing that made it a global crisis was that the banks and
mortgage companies leveraged these mortgages with derivatives that
were worth many times more than the underlying mortgages.

That's wrong too. AFAIK, there was no leveraging that caused the problems.
The "derivatives" were simply pooling mortgages together into securities and
selling shares in them to investors. It was fundamentally sound, not leveraged
and it increased funding for mortgages. The only problem was in the lending
practices where banks and institutions made progressively riskier loans to
people with marginal ability to be able to keep up with the payments on real
estate that had already appreciated sharply and was over valued. And then
when the problems started, it was further complicated by the fact that investors
only knew they had an investment in mortgages, without any way of knowing
how many of those mortgages were in trouble, what the properties were really
worth at the moment, etc.

And absent the MBSs, it most certainly would not have simply meant a lot of
people got evicted. There were huge losses there, because the values of the
properties declined, the real estate market turned poor, millions of properties
were under water, not worth the mortgage value. THAT is what lead to the huge
losses, those were real and would have been widespread whether the mortgages
were part of MBSs, held by Fannie or Freddie (which went bankrupt), held by banks,
or held by the seller.



Commercial
banks like BoA were heavily invested in them with depositor money.

That's wrong too. AFAIK, BOA and similar didn't invest in MBS. They originated
the mortgage loans, packaged them into MBS and sold them to investors.
And banks have always had exposure to mortgage loan risk, that's their business.
Prior to MBSs banks passed mortgages on to Fannie and Freddie, this was similar.



Much of that bail out money also went to bail out foreign investors.
That is why it was claimed to be a global crisis.

Show us your proof for that claim, because I suspect it's also BS. I never
heard of *any* of the 2009 bail out money going to foreign investors. It was
a worldwide crisis, because when the core of the US financial system is in crisis, it
will always be a worldwide crisis. I can't help again notice that you're just like
Trump, just make it up on the fly.