Atrios has been linking more and more to articles on a blog named Calculated Risk, and I can see why. Some of the discussion there is very in-depth and complete.
Of particular note is this article which makes a stab at explaining one reason why the whole mortgages-as-securities concept fell apart. It's rather long, very hairy and involved, and amazingly educational. The bit I had the hardest part understanding was, oddly enough, the graph. Once I realized that the horizontal scale referred to the return rate offered by the rest of the market and not the instrument under consideration (that's fixed in the example at 6.0%), it suddenly made sense.
It may hurt your brain, but it will be good for you. Highly recommended.
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