--- title: "Meaning & Key Takeaway of: The people who did the collateralized…" description: "\"The people who did the collateralized mortgage obligations, sold them to pension funds, then sold them short, then bought credit default swap insurance..." image: "https://sms4smile.com/quotes/i/955/ben-stein-2703_amazing_the-people-who-did-the-collateralized-mo_2743070.jpg" --- # The people who did the collateralized mortgage… ![“The people who did the collateralized mortgage obligations, sold them to pension funds, then sold them short, then bought credit default swap insurance on them, are just amazing. They are a law unto themselves.” quote by Ben Stein](https://sms4smile.com/quotes/i/955/ben-stein-2703_amazing_the-people-who-did-the-collateralized-mo_2743070.jpg) [Download](https://sms4smile.com/quotes/i/955/ben-stein-2703_amazing_the-people-who-did-the-collateralized-mo_2743070.jpg) [Open image](https://sms4smile.com/quotes/i/955/ben-stein-2703_amazing_the-people-who-did-the-collateralized-mo_2743070.jpg) > “The people who did the collateralized mortgage obligations, sold them to pension funds, then sold them short, then bought credit default swap insurance on them, are just amazing. They are a law unto themselves.” [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Complex financial engineering can create opaque products that benefit a few while harming many. **In simple terms:** Complex finance can hurt many. Key Takeaway Beware hidden risks. Themes finance ethics risk manipulation Mood cautious critical Type analytical warning When to use this quote - investment banking - pension fund management - regulatory oversight Key Concepts Moral hazard systemic risk short selling Questions to Reflect On - How can transparency be improved? - What safeguards protect investors? A Different Perspective Such schemes can destabilize markets and erode trust. ★ ★ ★ ★ ★ No ratings yet [Amazing](https://sms4smile.com/quotes/about/amazing/) [Amazing Law](https://sms4smile.com/quotes/about/amazing-law-3042497/) [Collateralized](https://sms4smile.com/quotes/about/collateralized-263230/) [Collateralized Mortgage](https://sms4smile.com/quotes/about/collateralized-mortgage-3042496/) [Credit](https://sms4smile.com/quotes/about/credit/) [Credit default swap](https://sms4smile.com/quotes/about/credit-default-swap/) [Customer](https://sms4smile.com/quotes/about/customer/) [Default](https://sms4smile.com/quotes/about/default/) [Fund](https://sms4smile.com/quotes/about/fund/) [Insurance](https://sms4smile.com/quotes/about/insurance/) [Law](https://sms4smile.com/quotes/about/law/) [Mortgage](https://sms4smile.com/quotes/about/mortgage/) [Obligation](https://sms4smile.com/quotes/about/obligation/) [Obligations Sold](https://sms4smile.com/quotes/about/obligations-sold-3042498/) [Pension](https://sms4smile.com/quotes/about/pension/) [People](https://sms4smile.com/quotes/about/people/) [Short](https://sms4smile.com/quotes/about/short/) [Sold Pension](https://sms4smile.com/quotes/about/sold-pension-3042499/) ## Related quotes > [You can't explain collateralized debt obligation in a novel - it's too draggy.](https://sms4smile.com/quotes/john-lanchester/you-can-t-explain-collateralized-debt-obligation-in-a-novel-it-s-too/) [John Lanchester](https://sms4smile.com/quotes/author/john-lanchester/) > [The collateralized debt obligation, the CDO, is a structure which allows you to more or less continuously choose how much risk you want to…](https://sms4smile.com/quotes/robert-f-engle/the-collateralized-debt-obligation-the-cdo-is-a-structure-which/) [Robert F. Engle](https://sms4smile.com/quotes/author/robert-f-engle/) > [“In the same way that a collateralized-debt obligation is the sum of hundreds of individual mortgages, the real value of a film is the…](https://sms4smile.com/quotes/joshua-green/in-the-same-way-that-a-collateralized-debt-obligation-is-the-sum-of/) [Joshua Green](https://sms4smile.com/quotes/author/joshua-green/) > [I'm no financial expert. I scarcely know what a coin is. Ask me to explain what a credit default swap is, and I'll emit…](https://sms4smile.com/quotes/charlie-brooker/i-m-no-financial-expert-i-scarcely-know-what-a-coin-is-ask-me-to/) [Charlie Brooker](https://sms4smile.com/quotes/author/charlie-brooker/) > [“When the Goldman Sachs saleswoman called Mike Burry and told him that her firm would be happy to sell him credit default swaps in…](https://sms4smile.com/quotes/michael-lewis/when-the-goldman-sachs-saleswoman-called-mike-burry-and-told-him-that/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [The money has to be deferred with what they call "clawback," which means they can get it back if I lose it all. So…](https://sms4smile.com/quotes/richard-thaler/the-money-has-to-be-deferred-with-what-they-call-clawback-which-means/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [“A credit default swap was confusing mainly because it wasn’t really a swap at all. It was an insurance policy, typically on a corporate…](https://sms4smile.com/quotes/michael-lewis/a-credit-default-swap-was-confusing-mainly-because-it-wasn-t-really-a-2/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [Countries are not like financial markets. Social change cannot be executed as swiftly as credit-default swaps. You cannot sell short on social commitments and…](https://sms4smile.com/quotes/george-papandreou/countries-are-not-like-financial-markets-social-change-cannot-be/) [George Papandreou](https://sms4smile.com/quotes/author/george-papandreou/) > [A credit default swap was confusing mainly because it wasn't really a swap at all. It was an insurance policy, typically on a corporate…](https://sms4smile.com/quotes/michael-lewis/a-credit-default-swap-was-confusing-mainly-because-it-wasn-t-really-a/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [“On its surface, the booming market in side bets on subprime mortgage bonds seemed to be the financial equivalent of fantasy football: a benign,…](https://sms4smile.com/quotes/michael-lewis/on-its-surface-the-booming-market-in-side-bets-on-subprime-mortgage/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [Credit default swap gives you something to do. You can buy some credit default swaps from them to protect yourself against the bankruptcy of…](https://sms4smile.com/quotes/robert-f-engle/credit-default-swap-gives-you-something-to-do-you-can-buy-some-credit/) [Robert F. Engle](https://sms4smile.com/quotes/author/robert-f-engle/) > [“There was more than one way to think about Mike Burry’s purchase of a billion dollars in credit default swaps. The first was as…](https://sms4smile.com/quotes/michael-lewis/there-was-more-than-one-way-to-think-about-mike-burry-s-purchase-of-a/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [As the financial experts all over the world use machines to unwind Gordian knots of financial arrangements so complex that only machines can make…](https://sms4smile.com/quotes/richard-dooling/as-the-financial-experts-all-over-the-world-use-machines-to-unwind/) [Richard Dooling](https://sms4smile.com/quotes/author/richard-dooling/) > [I mean, we've always had gold bugs, but now we sort of realize that Treasure Bills might be in the same category. And we…](https://sms4smile.com/quotes/robert-f-engle/i-mean-we-ve-always-had-gold-bugs-but-now-we-sort-of-realize-that/) [Robert F. Engle](https://sms4smile.com/quotes/author/robert-f-engle/) > [So what is the role that credit default swaps can play in an economy? Well my feeling is that if these things actually will…](https://sms4smile.com/quotes/robert-f-engle/so-what-is-the-role-that-credit-default-swaps-can-play-in-an-economy/) [Robert F. Engle](https://sms4smile.com/quotes/author/robert-f-engle/) ## More by Ben Stein > [I think, there are many people who are much smarter than I am, and many, many, many who are much harder-working than I am,…](https://sms4smile.com/quotes/ben-stein/i-think-there-are-many-people-who-are-much-smarter-than-i-am-and-many/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [Emperor Sid Caesar is gone to eternity himself now. He takes with him the gratitude of every one of us who first learned the…](https://sms4smile.com/quotes/ben-stein/emperor-sid-caesar-is-gone-to-eternity-himself-now-he-takes-with-him/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [I am back in LA now. And I keep thinking back to my time in New York after the bombings… I was crying so…](https://sms4smile.com/quotes/ben-stein/i-am-back-in-la-now-and-i-keep-thinking-back-to-my-time-in-new-york/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [I'm not a Mensa member. I have no idea where that rumor came from. I never have been, and I doubt if I ever…](https://sms4smile.com/quotes/ben-stein/i-m-not-a-mensa-member-i-have-no-idea-where-that-rumor-came-from-i/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [The successful people of this world take life as it comes. They just go out and deal with the world as it is.](https://sms4smile.com/quotes/ben-stein/the-successful-people-of-this-world-take-life-as-it-comes-they-just/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [It's really amazing that in the age of unbelief, as a smart man called it, there isn't even more fraud. After all, with no…](https://sms4smile.com/quotes/ben-stein/it-s-really-amazing-that-in-the-age-of-unbelief-as-a-smart-man-called/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [It is so great to sleep in safe, glorious, beautiful America. I just cannot get over it.](https://sms4smile.com/quotes/ben-stein/it-is-so-great-to-sleep-in-safe-glorious-beautiful-america-i-just/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [The first step in getting what you want from life-decide what you want.](https://sms4smile.com/quotes/ben-stein/the-first-step-in-getting-what-you-want-from-life-decide-what-you-want/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [And now, any of those who refuse, or are unable, to prove they are citizens will receive free insurance paid for by those who…](https://sms4smile.com/quotes/ben-stein/and-now-any-of-those-who-refuse-or-are-unable-to-prove-they-are/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [I have to tell you I never in my life anticipated getting this old, this fast. It seems as if I were 25 just…](https://sms4smile.com/quotes/ben-stein/i-have-to-tell-you-i-never-in-my-life-anticipated-getting-this-old/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [Yes, Americans can still get credit for cars and trucks and refrigerators, and those businesses are doing well. But just try to get a…](https://sms4smile.com/quotes/ben-stein/yes-americans-can-still-get-credit-for-cars-and-trucks-and/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [For any exam in history, here is the answer: all human history is the struggle between systems that attempt to shackle the human personality…](https://sms4smile.com/quotes/ben-stein/for-any-exam-in-history-here-is-the-answer-all-human-history-is-the/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [The ordinary American - as far as I can tell - knows so much less than he did fifty years ago and has such…](https://sms4smile.com/quotes/ben-stein/the-ordinary-american-as-far-as-i-can-tell-knows-so-much-less-than-he/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [But when I talk to people who are Darwinists or evolutionists and say, 'Well, how did life begin' -- they're...they don't have an answer.…](https://sms4smile.com/quotes/ben-stein/but-when-i-talk-to-people-who-are-darwinists-or-evolutionists-and-say/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) > [Personal relationships are the fertile soil from which all advancement, all success, all achievement in real life grows.](https://sms4smile.com/quotes/ben-stein/personal-relationships-are-the-fertile-soil-from-which-all/) [Ben Stein](https://sms4smile.com/quotes/author/ben-stein/) [Explore all 153 Ben Stein quotes ](https://sms4smile.com/quotes/author/ben-stein/) ## More Amazing quotes > [My favorite galaxy of all is called the Sombrero, NGC 4594. It's an amazing galaxy that is really two galaxies in one.](https://sms4smile.com/quotes/sandra-faber/my-favorite-galaxy-of-all-is-called-the-sombrero-ngc-4594-it-s-an/) [Sandra Faber](https://sms4smile.com/quotes/author/sandra-faber/) > [I don't own designer clothes, or a sports car, or a huge house, but I am seeing the world, experiencing amazing things, and I…](https://sms4smile.com/quotes/roz-savage/i-don-t-own-designer-clothes-or-a-sports-car-or-a-huge-house-but-i-am/) [Roz Savage](https://sms4smile.com/quotes/author/roz-savage/) > [There is something about the South that accepts the supernatural. If you don't accept it and you're having a conversation with someone who does,…](https://sms4smile.com/quotes/alice-englert/there-is-something-about-the-south-that-accepts-the-supernatural-if/) [Alice Englert](https://sms4smile.com/quotes/author/alice-englert/) > [Yoga's an amazing release.](https://sms4smile.com/quotes/monica-keena/yoga-s-an-amazing-release/) [Monica Keena](https://sms4smile.com/quotes/author/monica-keena/) > [I struggled and I did theater for 10 years, for 15 years, I tried to get little parts here and there in TV shows.…](https://sms4smile.com/quotes/james-tupper/i-struggled-and-i-did-theater-for-10-years-for-15-years-i-tried-to/) [James Tupper](https://sms4smile.com/quotes/author/james-tupper/) > [I think cricket is there in Usain Bolt's blood. Since I got to watch from close quarters, it was amazing to see him run…](https://sms4smile.com/quotes/harbhajan-singh/i-think-cricket-is-there-in-usain-bolt-s-blood-since-i-got-to-watch/) [Harbhajan Singh](https://sms4smile.com/quotes/author/harbhajan-singh/) > [Literally every person in my life is so amazing. I even don't understand how I am so blessed](https://sms4smile.com/quotes/anonymous/literally-every-person-in-my-life-is-so-amazing-i-even-don-t/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [I got to travel a lot and meet amazing people. That was a lot of fun.](https://sms4smile.com/quotes/bhavish-aggarwal/i-got-to-travel-a-lot-and-meet-amazing-people-that-was-a-lot-of-fun/) [Bhavish Aggarwal](https://sms4smile.com/quotes/author/bhavish-aggarwal/) > [Under Thatcher, who ruled us with an iron rod, great art was made. Amazing designers and musicians. Acid house was born. Very colourful and…](https://sms4smile.com/quotes/noel-gallagher/under-thatcher-who-ruled-us-with-an-iron-rod-great-art-was-made/) [Noel Gallagher](https://sms4smile.com/quotes/author/noel-gallagher/) > [A stadium tour would be amazing - that's definitely one of my goals. Just to keep putting out real, honest music that people can…](https://sms4smile.com/quotes/daya/a-stadium-tour-would-be-amazing-that-s-definitely-one-of-my-goals/) [Daya](https://sms4smile.com/quotes/author/daya/) > [I definitely want to put together an amazing debut album with some really dreamy collaborations.](https://sms4smile.com/quotes/bree-runway/i-definitely-want-to-put-together-an-amazing-debut-album-with-some/) [Bree Runway](https://sms4smile.com/quotes/author/bree-runway/) > [So crazy to think that we have only known each other 2 years. its been so amazing and we have got to do so…](https://sms4smile.com/quotes/one-direction/so-crazy-to-think-that-we-have-only-known-each-other-2-years-its-been/) [One Direction](https://sms4smile.com/quotes/author/one-direction/) > [I saw Frank Frazetta's art, and it seared on my memory. I love his paintings. 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