Ben Stein
The Quote in Other Words
The individuals who created the collateralized mortgage obligations, marketed them to pension funds, subsequently bet against them, and purchased credit default swap insurance on them, are truly remarkable. They operate independently and without regard for the law.
Explanation of the Quote
This quote highlights the unethical practices of those involved in the collateralized mortgage obligation (CMO) market. The individuals responsible for creating and selling these securities to pension funds, only to then bet against them and purchase credit default swap insurance, are described as “a law unto themselves.” This suggests that they operate outside of the boundaries of ethical and legal behavior.
The quote sheds light on the greed and lack of accountability that characterized the CMO market leading up to the 2008 financial crisis. The individuals involved in these practices were driven by profit and personal gain, rather than the well-being of their clients or the stability of the financial system.
Overall, this quote serves as a cautionary tale about the dangers of unchecked greed and the importance of ethical behavior in the financial industry. It highlights the need for greater regulation and oversight to prevent similar crises from occurring in the future.