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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth

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To: geode00 who wrote (146005)11/6/2008 4:30:09 PM
From: TimF  Read Replies (1) of 173976
 
Securitization by itself would not have lead to any crisis. In the context of all the other factors and securitization you now have the problems in the real estate and credit markets.

Also securitization itself was to a very great degree the result of government action. The GSEs where behind most of the creation of the secondary market for mortgages, and government regulations on capital requirements favored securitization over holding the loans you originated.
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