Times Live – If investment banks were permitted to create murky products out of bundled-up mortgages that home owners were unlikely ever to repay, then hedge funds were going to trade them. Any money manager worth his salt will try to extract profit from every legitimate trade going. As long as there were buyers and sellers, everything from repackaged sub-prime loans to sovereign credit default swaps was fair game.
The other unpalatable truth is that those exotic products were intended, from the start, to mitigate risk.
