Why did the securitization of bundles as AAA impact the residential mortgage market so negatively during the 2008 financial crisis?

Question

Answer

In fact, lending banks would sell off the mortgages within a few weeks of the deal

Answer

AAA rating indicates a high level of investment

Answer

Because it meant that the deal was a poor investment

Answer

With a AAA rating, consumers believed they were getting mortgages that were within their financial means

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