By Felix Salmon
September 25, 2009

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Indiviglio defends securitization by saying it should have been done right, in which case it would never have taken off — Atlantic

Konczal’s requiem for the vanilla option — Rortybomb

37signals is now a $100 billion company, after investors bought 0.000000001% of the company for $1. Genius! — 37signals

The flack-to-hack ratio rises above 2 — BusinessWeek

This is the most amazing map of NYC I’ve ever played with — Oasis

Is this the greatest headline ever? — Twitpic


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The assumption that underwrote MBS issuance was home prices wouldn’t go down. There might be a default, but principal would be protected by rising home values. Too much money was to be had by buying into that assumption, and the investors that didn’t believe that would just be priced out of the MBS sales and sit on the sidelines.

Securitization was tainted by the ‘home prices only go up’ assumption, but so was the rest of the market.

Posted by winstongator | Report as abusive

If you’re inclined to reply to this statement: “Salmon’s claim that “no one really knows” what’s in a securitization is common perception. It’s also completely false.” you might find this article useful: curitization-group-launches-code-to-trac k-loans/

Posted by anon | Report as abusive