ProPublica, an independent investigative journalism force, has done a series on CDO’s – Collateralized Debt Obligations, and how those packaged pieces of the mortgage world brought not only big money to the banks, but also meterorically increased their risk.
This piece is a simple illustration, and I’m thankful for that because sometimes the world of high finance is like wading into a big old pond of black water at midnight for my brain.
I post this because the next posts will be on “where’s the note?” It will be useful to keep these CDO managers and their dollies full of stink in mind.
I recommend reading the entire CDO series. You’ll find links to the main article both above and below the cartoon.