A Give me an example of the First Welfare Theorem failing sp

A. Give me an example of the First Welfare Theorem failing, specifically in the context of the housing crisis.

B. Now discuss what the First Welfare Theorem got wrong (think about the assumptions).

1 Those holding CDo lost bitterly. Housing mortigage system failed. The current of loan was greater than the price of homes

2 it happened due to asymmetric information. Those holding CDo, mortgages didn\'t know about true value and risk of these assets