4  Calomiris, C. W. (2009), “The Subprime Turmoil: What's Old, What's New, and What's Next,” in: Maintaining Stability in a Changing Financial System,” Federal Reserve Bank of Kansas City, pp. 19-110. BIS Review 74/2009  3  investors – use the similar logic to justify their purchases.
Everybody else was buying the same financial instruments and nobody had a problem with it, the excuse goes. It is natural to believe that this plausible deniability was one of the reasons that the “credit bubble” in securitized instruments emerged and was maintained for such a long period of time.