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The Whiteboard: How credit cards become asset-backed bonds
Mortgages aren't the only financial instruments that get turned into securities. Marketplace Senior Editor Paddy Hirsch explains how companies make money by buying credit card debt and bundling it.
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When are we going to outlaw gambling, the buying and selling of CDO's and other 'securitized debt?' Even more important, when are we going to outlaw the 'insurance-like,' non-insurance products that cover these bets? Anytime you hear "innovative, new financial products," even when proclaimed by Kevin Warsh in his speech to Federal Reserve on July 28, remember Enron and Andy Fastow. We know what happened to him and his former company. What will happen to the U.S. and our government?
