The report is quite detailed so a summary would be useful. My limited understanding is that mortgage backed securities are not directly commensurate with real estate values anyway. They were a means of selling on wholesale debt in order to re-finance more selling of debt. Insofar as the two may appear inextricably linked, aren’t MBSs, CDO’s etc exposed as much to the whims of the securities market, as the real estate market?
BTW, I loved the metaphor of a little old lady threading her needle. I hope it’s not a camel she’s using.
