Securitization itself is not the flaw: credit-card securitization used the same originate-and-distribute model for 30 years without failing alongside subprime, because the prudent incentives long applied in credit-card securitization were deliberately set aside in mortgage securitization—made possible by government programs.
causalpending
Speaker
Charles CalomirisEvidence Quote
“all of the lessons that we've learned for 30 years in the credit card securitization business... we're completely put aside in the mortgage securitization business and that's because of incentives that were established by government programs”
Created: 6/15/2026, 9:20:15 AM
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