Amateur Investors

I had to double check the date Against The Gods was published. In the chapter, 'The Fantastic System Of Side Bets', which I missed the last time I read this book, is a small foot note that I have reproduced below:

"Most individual home mortgages are packaged with other mortgages and sold off in the open market to a wide variety of investors. In effect, the bankers have traded off the risks of prepayment to a market more willing to bear that risk; these mortgage-backed securities are complex, volatile, and much too risky for amateur investors to play around with."

I was under the impression that the present crisis was due to an instrument of a more recent origin. Evidently I was totally wrong. Against the God was published in 1996.

I wonder who Bernstein thinks are "amateur investors".

Note: The photograph used belongs to Myles Davidson. Please go here to see more such photographs