DIGG THIS Structured finance and securitization have blown up in the Panic of 2008. Those in power have learned nothing about the current economic catastrophe. The U.S. government is still supporting Fannie Mae and Freddie Mac and still trying to resurrect a system that has collapsed before its eyes. There is little question that governments here and abroad provided the major impetus for these financial methods that have come to grief. In his book, Securitization, Vinod Kothari writes: "In most countries, governments have tried to promote housing finance, by setting up specialized housing refinance bodies or secondary mortgage market bodies. … Continue reading The Blow-Up