The mortgage based security crisis has confounded me because I keep thinking, “So what if the mortgages fail, that’s what the underlying asset is for. Why is this thing so intractable?”
One gentleman in particular seems to have it laid out in a sensible and understandable fashion. I give you the thoughts of a fella named Uncle Bud. Here’s a taste:
Uncle Bud goes on to break the problem down into comprehensible chunks. Check it out.