Before revision:  Asset backed securities have been extensively criticised for creating a moral hazard in loan issuance by removing any incentive on the lender to ensure that the recipient of such loans could repay them.
After revision: Analysis of the 2007-8 credit crisis has concentrated on issues of relaxed lending standards, and the perception of irrational behaviour by speculative investors in real estate and other assets. Asset backed securities have been extensively criticised for creating a moral hazard in loan issuance by removing any incentive on the lender to ensure that the recipient of such loans could repay them.