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Politics : American Presidential Politics and foreign affairs

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To: DuckTapeSunroof who wrote (39799)12/22/2009 7:22:30 PM
From: TimF  Read Replies (1) of 71588
 
Counting securitized and sliced up holdings as far safer than direct holdings, drove the over-securitization in the market. I wouldn't claim it was the only factor, but it was a significant one.

Once again before the government got involved in the mortgage securitization business, little of it happened, and before it gave benefits to private sector securitization or mortgages much less of it happened. When the government gave such holdings much better regulatory treatment than conventional debt, securitization exploded.
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