An unpopular opinion: a mortgage backed security and the various derivatives built on top of the same are perfectly reasonable products; the only problems in 2008 were (massive) underappreciation/underpricing of credit risk.
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A related belief: financial engineering is a serious engineering discipline, contributes substantially to consumer welfare at all economic levels, and therefore should not be employed as a slur, particularly by engineers.
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As long as I’m on the topic: the finance industry employs hundreds of thousands of technologists and, while engineers generally deride their level of competence, a single US investment bank ships more software for harder problems than probably every e.g. YC company combined.
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On the flip side, a cryptocurrency crash will probably not wipe out general-purpose financial institutions. Lehman did more than CDOs, but with the leverage they had, it didn't matter.
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The longer the crypto mania lasts, the less convinced I am of this.
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And as a result of easy credit, what happened? People with little knowledge of fair market valuations bought... Irrelevant of the cost.
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Homes are leveraged, leverage is key to create bubbles that reverberate through the economy. The collapse of cryptos could not have the same effect.
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