Securitization: Have We Learned Our Lesson?

The Baseline Scenario submits:

By James Kwak

The New York Times had a story Tuesday that said, basically, that credit has dried up because of lack of demand for asset-backed securities. In English, that means that since no one wants to invest in securities that are made out of home mortgages, the people who originate mortgages have no place to sell the mortgages, so they don’t have any money to lend.

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