The 2008 Global Financial Crisis was the same scale-driven phenomenon as passive: the insight that pooled mortgages reduce idiosyncratic risk was correct, but at scale the system began manufacturing mortgages to fill demand for investment product rather than demand for housing, which broke the historical risk assumptions and caused the crisis.
causalpending
Speaker
Mike GreenEvidence Quote
“the system began manufacturing mortgages to fill demand for investment product as compared to mortgages to fill demand for housing right we created the global financial crisis this is the same underlying phenomenon”
Source
The Trillion Dollar Trap | Mike Green on Passive Investing's Fatal Design Flaw— Excess ReturnsCreated: 6/18/2026, 1:59:25 PM
My Notes
Loading notes...