ML - The way the world works - analyzing how things work

why do banks acccumulate mortgage backed securities, and why do they mark them to market?


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Banks should be money warehouses of money not investment houses. Because banks have chose to become investment entities they increase their risk through speculation chasing profits. In the event of bad investment they default or beg for bailout from the taxpayer. The fed lends money and inflation increases.
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ML - The way the world works - analyzing how things workBy David Nishimoto

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