Correct. Ignoring dependence caused the 2008 financial meltdown. Mortgage securities were created assuming mortgage failures were independent, when in a financa

Correct. Ignoring dependence caused the 2008 financial meltdown. Mortgage securities were created assuming mortgage failures were independent, when in a financal meltdown failures are highly correlated. In math terms this is difference of a product of numbers less than one or the minimum of numbers less the one. The latter can be substantially higher than the former.