Let us acknowledge the end of securitization as we have known it. As what began as a "subprime" problem metastasized into, first, a credit market collapse and, ultimately, a worldwide economic crisis, those of us who lived and worked and profited from securitization should do some deep soul-searching. What we now see, with the benefit of hindsight, is not just a series of bad judgments and unintended consequences but instead a wholesale systemic failure of gargantuan proportions. The original securitization paradigm became so corrupted over time by those participating in the MBS/CDO sector that it is pointless to debate whether good technology got into the wrong hands or the technology was itself flawed. It is impossible to distinguish "the dancer from the dance," and the market is, without mercy, sweeping both away.

The Pre-Meltdown View of The Financial System

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