Mortgage security trading was a major source of profits on Wall Street, and I know that a lot of Hank Paulson's crowd want to revive that industry. Instead, I'm ready to treat it like the parrot in the Monty Python pet shop sketch. The mortgage securitization model is dead. It is no more. It is deceased. Gone to meet its maker. It has ceased to be.Visit EconLog for much more from somebody who actually knows what he's talking about.
Friday, September 26, 2008
Arnold Kling talks sense
Arnold Kling is an economist who used to work at the Fed and at Freddie Mac; I think he makes a lot of sense. For example: