Let me make it clear about payday advances: Financial Weapons of Individual Destruction

Let me make it clear about payday advances: Financial Weapons of Individual Destruction

The Chairman and CEO of Berkshire Hathaway Inc. characterized derivatives as “financial weapons of mass destruction” or financial W.M.D.s during the Financial Crisis of 2008, Warren Buffet. These instruments ended up being enormous wagers put in worthless subprime house loans that have been made without respect to your borrower’s earnings or creditworthiness and later sold to investors. The holders of these financial W.M.D.s (e.g., big banks and large insurance companies) mounted huge losses causing massive economic fallout as homeowners continued to default on their mortgage payments. Читать далее «Let me make it clear about payday advances: Financial Weapons of Individual Destruction»