http://www.zerohedge.com/news/jpmorgan-issue-cmbs-backed-defaulted-loans
I'll summarize the article for those who may not understand it: Creative greed. JP Morgan creating another derivative that carries too much risk yet because of it's complication, few will question it. Perhaps this newly created product will work for them as a successful investment, but that doesn't mean it's a good idea.
That's why it's best to manage risk on a smaller level and diversify your exposure. Over complicated finance has a history of getting messy.
No comments:
Post a Comment