--- title: "Meaning & Key Takeaway of: give you an example. A bank gives some…" description: "\"“give you an example. A bank gives some poor schmuck a mortgage at 100% the value of his property. No deposit. The bank sells the debt off to a larger ..." image: "https://sms4smile.com/quotes/i/caa/nick-stephenson-35424_customer_give-you-an-example-a-bank-gives-some-po_2909258.jpg" --- # give you an example. A bank gives some poor schmuck a… ![“give you an example. A bank gives some poor schmuck a mortgage at 100% the value of his property. No deposit. The bank sells the debt off to a larger bank in return for instant cash. The larger bank bundles up a hundred crappy mortgages like this and sells insurance policies for ten cents on the…” quote by Nick Stephenson](https://sms4smile.com/quotes/i/caa/nick-stephenson-35424_customer_give-you-an-example-a-bank-gives-some-po_2909258.jpg) [Download](https://sms4smile.com/quotes/i/caa/nick-stephenson-35424_customer_give-you-an-example-a-bank-gives-some-po_2909258.jpg) [Open image](https://sms4smile.com/quotes/i/caa/nick-stephenson-35424_customer_give-you-an-example-a-bank-gives-some-po_2909258.jpg) > ““give you an example. A bank gives some poor schmuck a mortgage at 100% the value of his property. No deposit. The bank sells the debt off to a larger bank in return for instant cash. The larger bank bundles up a hundred crappy mortgages like this and sells insurance policies for ten cents on the dollar – because their analysts tell them it’s a sure thing. They do this with thousands of loans. The mortgage securities market grows. Nothing can go wrong, right?”” [Nick Stephenson](https://sms4smile.com/quotes/author/nick-stephenson/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The passage satifies how risky mortgage practices can appear safe until systemic flaws cause collapse, highlighting the danger of over‑optimistic financial engineering. **In simple terms:** Risky loans seem safe until they fail. Key Takeaway Beware of overly complex financial products. Themes finance risk systemic failure Mood cautious analytical Type economic educational When to use this quote - housing market - investment banking - regulatory oversight Key Concepts economics financial engineering Questions to Reflect On - What safeguards could prevent such crises? - How can transparency be improved? A Different Perspective optimism can blind investors to hidden dangers. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Investing](https://sms4smile.com/quotes/about/investing/) ## Related quotes > [“bank gives some poor schmuck a mortgage at 100% the value of his property. No deposit. The bank sells the debt off to a…](https://sms4smile.com/quotes/nick-stephenson/bank-gives-some-poor-schmuck-a-mortgage-at-100-the-value-of-his/) [Nick Stephenson](https://sms4smile.com/quotes/author/nick-stephenson/) > [In June 2005, mortgage rates were at 40-year lows, and risk premiums on mortgage securities were at all-time lows. 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