Abandon All Hope

July 3, 2010

Abandon all hope of really understanding, ye who read the best-selling books explaining the meltdown.

Why say that?  Because they can’t seem to get even the basics right.

I just read the second wildly incorrect explanation of how a simple CMO structured finance deal works, and, like the first one, it was in a popular non-fiction book that purports to tell the reader what happened in the much more complicated mortgage market meltdown, and why.

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