In Reply to: Remember CDOs and other morgage-backed derivatives? posted by mh on August 14, 2025 at 08:25:34
Mortgage backed securities were bad because the way the securities were bundled and packaged alienated their market value from the property the mortgages were based on in a way that made it almost impossible to evaluate the value of the underlying tangible property. But somewhere there was real property which had at least at some point been used to secure a loan.
Crypto and NFTs are kind of similar except they don't have any real property underneath the valuations.