Mortgage crisis

The real estate crisis of 2008 began when people realized that the mortgage backed securities could not be evaluated properly and were likely worth much less than they thought. This led to a collapse in the market. The question then arose as to why were people investing in a products when there was no way to determine its worth. There value was based on enthusiasm for the product. There is a similar situation going on today. Tesla has $45 billion in assets and the current value of its stock is $540 billion and people are buying it without regards to what is there to back up the company. This is what happened with mortgage backed securities. A bundle of mortgages worth continuing houses worth $10 million dollars might be sold for $100 million. This is the expected result of people who are buying products that they don't know the value. When a person buys Tesle they know its worth and are still willing to pay ten time that.