{"id":172,"date":"2007-12-04T09:30:48","date_gmt":"2007-12-04T16:30:48","guid":{"rendered":"http:\/\/blogs.law.harvard.edu\/cqtwo\/2007\/12\/04\/you-know-all-those-million-dollar-house"},"modified":"2007-12-04T09:30:48","modified_gmt":"2007-12-04T16:30:48","slug":"you-know-all-those-million-dollar-houses","status":"publish","type":"post","link":"https:\/\/archive.blogs.harvard.edu\/cqtwo\/2007\/12\/04\/you-know-all-those-million-dollar-houses\/","title":{"rendered":"You know all those million dollar houses?"},"content":{"rendered":"<p>How could anyone afford them?\u00a0 Well, it turns out, they couldn&#8217;t.\u00a0 That emperor, like so many others, didn&#8217;t have any clothes.\u00a0 But the &#8216;sub-prime&#8217; mortgage mess, which has spread to a credit mess may have already metastasized throughout the banking system.\u00a0  (See a <a href=\"http:\/\/blogs.law.harvard.edu\/cqtwo\/2007\/10\/25\/what-happened-to-the-quants-in-august-2007\/\" title=\"What happened to the Quants in August 2007?\">previous post<\/a> for a related dynamic in quant hedge funds last August.)<\/p>\n<p>Paul Krugman <a href=\"http:\/\/www.nytimes.com\/2007\/12\/03\/opinion\/03krugman.html?_r=2&amp;hp=&amp;oref=slogin&amp;pagewanted=print&amp;oref=slogin\" title=\"Innovating our way to financial crisis\">writes in the New York Times<\/a>, \u201cWhat we are witnessing,\u201d says Bill Gross of the bond manager Pimco, \u201cis essentially the breakdown of our modern-day banking system, a complex of leveraged lending so hard to understand that Federal Reserve Chairman Ben Bernanke required a face-to-face refresher course from hedge fund managers in mid-August.\u201d<\/p>\n<p>To reinterate: Bill Gross says that our banking system is breaking down and it&#8217;s so complicated that no one, including Ben Bernanke understands it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How could anyone afford them?\u00a0 Well, it turns out, they couldn&#8217;t.\u00a0 That emperor, like so many others, didn&#8217;t have any clothes.\u00a0 But the &#8216;sub-prime&#8217; mortgage mess, which has spread to a credit mess may have already metastasized throughout the banking &hellip; <a href=\"https:\/\/archive.blogs.harvard.edu\/cqtwo\/2007\/12\/04\/you-know-all-those-million-dollar-houses\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1116,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[96],"tags":[],"class_list":["post-172","post","type-post","status-publish","format-standard","hentry","category-politics"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p8jQA6-2M","_links":{"self":[{"href":"https:\/\/archive.blogs.harvard.edu\/cqtwo\/wp-json\/wp\/v2\/posts\/172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/archive.blogs.harvard.edu\/cqtwo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/archive.blogs.harvard.edu\/cqtwo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/cqtwo\/wp-json\/wp\/v2\/users\/1116"}],"replies":[{"embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/cqtwo\/wp-json\/wp\/v2\/comments?post=172"}],"version-history":[{"count":0,"href":"https:\/\/archive.blogs.harvard.edu\/cqtwo\/wp-json\/wp\/v2\/posts\/172\/revisions"}],"wp:attachment":[{"href":"https:\/\/archive.blogs.harvard.edu\/cqtwo\/wp-json\/wp\/v2\/media?parent=172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/cqtwo\/wp-json\/wp\/v2\/categories?post=172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/cqtwo\/wp-json\/wp\/v2\/tags?post=172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}