The media have made us all aware of how rapacious lenders and (in a few cases) mendacious borrowers foisted the subprime mortgage mess (SMM) on us. Here and there may have come a whisper about chronically forcibly depressed interest rates and profligate creation of money by the Fed, and never, ever will the elephant in the living room of affirmative-action lending gain any traction (just not nice, you know).
But from the University of Chicago via The Economist now comes yet another demon: securitization, and with “hard proof,” no less. Never mind that securitization has worked notably well for several centuries now for ownership and operation of corporations, for example – it’s securitization.
The Economist has the estimable virtue of providing links to the reports and studies that articles like this are about, so go to the article, and from there, link on to the “hard proof.”