Discuss the role of securitization in causing the 2007/8 global financial crisis?

The main point here is that securitisation was not the trigger for the crisis but contributed to the crisis in a number of ways:

i. Allowed banks to generate funding to expand their balance sheets â€Â" allowing them to expand their balance sheets more quickly than would otherwise be the case.
ii. Allowed the growth of shadow banking entities (SPVs for CDO’s â€Â" these were unregulated).
iii. Magnified the amount of debt that was linked to sub-prime mortgages that were vulnerable to default. Thus when default occurred the consequences of default were magnified.
iv. Spread the problem to banks that had no original exposure to sub- prime debt.

Can please help me elaborate these points?

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