Here Is What Really Went Wrong With Mortgage Backed Securities
Do you blame the supply side or the demand side?
In short, it wasn’t the complexity of MBSs or CDOs that led to their meltdown. It was the fact that demand for safety of senior tranches was so strong—and historical data from before 2002 misleading—that the pools were widened beyond warrant.
via Here Is What Really Went Wrong With Mortgage Backed Securities.