>The fact that we were not able to ban mortgage securitization after the crisis is appalling. IMO this is the root of the problems. Make banks hold their loans on their balance sheets!
Absolutely. The problem is that mortgages have become speculative instruments, with the profit privatized and the risk socialized. The old system was far more stable.
The old system gave us the savings and loan crisis. Is it fair to say the alternative is to recognize that for many homeownership simply is not an option?
Absolutely. The problem is that mortgages have become speculative instruments, with the profit privatized and the risk socialized. The old system was far more stable.