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“Ultimately, then, the error was one of management, not of financial technology. The banks’ balance sheets — and those of their off-balance-sheet vehicles — were expanding faster than the banks’ executives and risk managers could really keep a handle on. And rather than call a halt to that which they didn’t fully understand, they handed down edicts instructing the CDO desks to keep on dancing for as long as the music was playing. Most of the executives probably never even heard the term “super-senior” until those tranches started getting written down. It was their own incuriousness, rather than any CDS technology, which was really their undoing.” source...