Read Globalization Crossroads: Is Securitization the Enemy? This Globalization Crossroads section
discusses the role securitization played in the Financial Crisis of 2008. This crisis spread among developed
countries like a contagion, and the globalization of financial markets which sold mortgage-backed securities
was partially to blame.
Question:
Why was mortgage securitization seen as the culprit in the recent financial crisis? What role did regulation play
in the crisis?