[woodandsteel]

>However, the outcome of this is likely that banks will stop making loans all together.

Really? We had a healthy mortgage market for a great many decades before mortgage backed securities were invented. And if mortgages are such a bad idea that banks can't make money off of them, then we shouldn't have them.

[evanpw]

The secondary mortgage market isn't a recent invention. It's been an explicit policy goal of the US government at least since the Great Depression.