I suppose debt becomes a liability and can be written off as losses, but how much tangible wealth is actually being lost here? If lunacy had a price on it, you’d be able to buy it in Walmart. But it’s not just houses values that are baffling, the whole securitisation (horrible word) of debt that seems to be causing concern. Valuing mortgage backed securities is one thing but their schizophrenic cousin CDO’s, dreamed up by researchers with PHDs in maths, confounded everyone. I think we may have seen the last of them.
