Much Reviled Financial Innovation

One of the stories of the past couple months has been the dissection of the financial instruments that fueled the boom and bust of the mortgage market. I want to add my two cents on the roots of the problem. Because it is not in the instruments themselves. It’s in how they were used. These kinds of financial transactions will not go away but they will hopefully be used more efficiently in the future.

There are countless sources on this subject but two good background pieces can be found Read more