Bove on debt in the banking sector

Richard Bove, an analyst at Rochdale Securities, spoke at The Deal Economy 2010. Bove says that Congress is handling the reorganization of the banking sector the wrong way. The Deal's Sara Behunek did a great job summing up Bove's speech at the conference:

As the population of people at the age to buy a home decreased, banks started making subprime loans that were wrapped into newly created products like collateralized debt obligations, collateralized loan obligations, credit default swaps and mortgage-backed securities, which China bought up. As a result, by 2007, debt in the U.S. was growing three times faster than income growth. Thus, Bove concludes, the crash.

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News & Politics

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• Richard
• Bove

[RamessesR]

good stuff

[juddsk]

Nice Explanation. Very interesting.