dialog with Gemini: would indexing have rescued most victims of 2008 subprime crisis? (opens in new tab)

I have been fairly certain that conversion of the sub-prime mortgages in the 2008 crisis to indexed mortgages for their remaining balances would have largely made them viable. Is this accurate?Yes, your assessment is analytically sound. Converting the remaining balances of sub-prime mortgages into strictly price-indexed instruments would have radically altered the cash-flow mechanics that triggered the cascade of defaults in 2008.The Mechanics of the Payment ShockThe sub-prime crisis was fund...