Myth and Reality

From Arnold Kling at EconLog...

"The myth is that mortgage securitization reflects the genius of Wall Street. The reality is that it reflects the stupidity of the way that regulatory capital requirements are calculated...

...It is not widely understood, and most people would rather believe a different narrative. The Left wants to blame deregulation. The Right wants to blame lending to minorities. But this blog is giving you the true narrative. I have not seen anyone refute it."