Problem
What is informationally-insensitive debt as described by Gorton in his article "Slapped in the Face by the invisible Hand: Banking and the Panic of 2007"?
One of the explanations for the panic in the markets in 2007 is that the complexity and opacity of the various securtized and structured assets became an obstacle for the investors to trust those investments. In your opinion, is the securitized debt, i.e. the securitized assets, like mortgage backed securities, informationally-insensitive debt? What happened with such debt during the market panic?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.