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Despite their high ratings, many of those securities, based on risky loans, would prove worthless, roiling markets and threatening financial institutions worldwide.
But suppose that instead of a small manufacturing firm, it had been an international insurance giant and Colin was selling complicated financial products based on risky mortgages?
Reeves said that Britain was more susceptible than many other countries to the financial crash because "we were agnostic about where growth came from" - allowing it to be based on risky or unsustainable areas such as finance.
The shares fell on concerns that the investment bank could face a cash crunch from bigger-than-expected write-downs and could be hampered by a business model based on risky mortgage securities.
Mr. Obama's press secretary, Robert Gibbs, was quoted in Time magazine saying that "the president continues to have concerns that compensation will be based on risky behavior instead of performance".
Finally the paper tries to integrate the analysis based on macroeconomic variables with the approach based on risky market instruments.
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Mr. Gore cited as evidence Mr. Bush's economic plan, which Mr. Gore said was based on a "risky tax scheme" that would "threaten our prosperity".
The FCA said one consequence of the shift to comprehensive data collection could be insurers moving away from pooling large numbers of customers, and towards micro-segmentation of consumers based on how risky they are.
Adrift like other Republican moderates, Mr. Chafee broke with the party altogether and has now decided to run his own kind of highly unusual campaign, based on the risky premise that unpleasant times demand some unpleasant truths.
Based on how risky the customer is, the lender approves a loan at the so-called "buy" rate.
That helped prop up housing prices and fuel speculation on securities based on those risky mortgages.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com