Securitisation is the process of making securities of smaller assets.
You can't just make this stuff up, so there has to be a value associated with them.
Sure, many houses may be essentially worthless, but what is being talked about here is essentially 100 million homes with mortgages worth an average of $500,000.
The numbers just don't seem to add up.
Yes, CDS will see some serious problems, and we are heavily in the crapper, but I don't see it as the complete end of the world as we know it as this article is pointing out.
