The involvement of Wall Street firms, particularly Goldman Sachs, significantly shifted the risk dynamics in the financial market by pushing AIG Financial Products to insure an increasing volume of consumer loans. Initially, these loans comprised only a small fraction of subprime mortgages, but within a few months, the ratio surged to a staggering 95 percent. This dramatic change highlights a reckless accumulation of risk as AIG FP moved to cover $50 billion worth of triple-B-rated subprime mortgage bonds, making them vulnerable to defaults.

Michael Lewis's "The Big Short" illustrates how AIG FP's actions contributed to the destabilization of the financial system. By insuring such a high percentage of low-quality mortgages, AIG exposed itself to tremendous financial risk. The decision to back these subprime bonds reflected a misguided confidence in their security, without adequately considering the underlying dangers of the market that would later lead to widespread economic turmoil.