FCIC Report Misses Central Issue: Why Was There Demand for Bad Mortgage Loans? the benefits for originating bad loans exceeded the cost of these negative consequences

"The introduction of a standardized contract on credit default swaps in the mortgage related market (which took place in June 2005….notice the timing relative to when the really bad mortgage issuance took off?) allowed interested parties to bet against the mortgage market in a remarkably efficient manner – through the use of CDOs."

BINGO!!!  Read this excellent post at Naked Capitalism HERE