There is a certain beauty to securitization that will never be appreciated again for what happened. It is an expression of genius, masterful innovation equally as powerful for shaping our world as the jet engine or the transistor. In many ways, this bit of financial majesty has done more than either of those, and that is precisely the problem.
The idea behind the process is simple enough, as these things usually are. There are various motivations for any financial institution to hold any asset. Securitization brought together several factors which allowed for these demands to be met…

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