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Securitization's First Wave of Failures

The NY Times' Floyd Norris has a column today about a surprising paper just out at the National Bureau of Economic Research. Turns out those securitized mortgage derivatives that sank the economy two years ago were not new.

They were just like the ones that triggered the Great Depression.

Norris:

One wonders why we were not told of this by (freshly reconfirmed) Fed Chairman Ben Bernanke, a supposed Great Depression expert.

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The paper's authors, Yale Professor William N. Goetzmann and former Yalie-turned-hedge-fund-guy Frank Newman appear to be economic generalists. Newman dug out the data, according to Norris.

Working Paper abstract:

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Norris:

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