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(Originally published 12/1/2010)
A while back, the banks created worthless mortgages and then bundled them into "valuable" securities, selling them as "sound investments". When the housing bubble popped, those same mortgages and securities became so worthless that they were dubbed "toxic assets" (akin to "toxic waste").
Moreover, the effects of those bad securities have spread like a plague, dragging down firm after firm and requiring governments to commit trillions of dollars to keeping the world financial system afloat.
An investor shouldn't have to guess whether they're buying a sound investment or some fraudster's snake oil. It seems to me that we need a mandatory hazard label to be placed on any asset proven to be as unreliable as the ones the banks threw together in the 2005-2006 timeframe.