I trade volatility for a living. I scrutinize the smallest changes in rates. Of course bad mortgages are not great, however in dollar scale vs. The corporate bond market, they are meaninglessly insignificant. The cdos they are baked into being bought at leverage (again due to low rates) is the problem.

Me too, vol is the only true asset class.

I don’t disagree with what you say. But affordability can only be solved by increasing supply. Everything else is just shuffling the deck.

In the most desirable locations housing is mostly vacant.