Chapter 6 talks about in late 2008, Born's nightmare comes true with the financial crisis. It also mentions Lehman's bankruptcy, markets crash, credit freezes. Now, huge banks' toxic assets are tied into over-the-counter derivatives.
From 2004 to 2007, Fannie [Mae] and Freddie [Mac] are all of a sudden under assault from Wall Street. Wall Street is trying to take over Fannie and Freddie's business. And Fannie and Freddie, to compete, basically start saying, "We're going to start buying riskier and riskier loans."
all of the data that was the ballast that supported this belief that homes will never lose any value, the underpinnings of that have disappeared.
forced the insurer to accept a $182.3 billion bailout from the U.S. government
Because the company was so diverse and global, “there was no one in charge,”
after failing to get support from Warren Buffett’s Berkshire Hathaway Inc. or arrange a loan through JPMorgan Chase & Co. and Goldman Sachs Group Inc.