(FINANCE) real estate mortgage backed securities; usually used to refer to the derivatives created by Fannie Mae
and Freddie Mac
that were used to create collateralized debt obligations CDO
Most economists seem to agree that the 2008 crisis was caused by the collapse of the real estate market, which was mainly caused by the toxic relationship between RMBS's and the CDO's created mostly with them.
For almost eighty years the RMBS business helped people buy homes, with few serious problems. Then Congress abolished Glass-Steagall
, the banks merged and created CDO's, and total disaster followed.
And now our neighborhoods look awful as well.