[lbo-talk] origins of the housing boom

[Indian Jones]

SA wrote:
> On 8/30/2011 12:27 PM, Ted Winslow wrote:
>> If "everybody" had known of these risks, bets (CDSs) would not have
>> been readily available that treated them as negligible. 
> 
> (b)  the consensus was that the risk of outright negative house price
> appreciation on a national basis was negligible

Bingo!
THE illusive risk depended on perception of risk. Which was managed.
Risk is an exploited reification.