Quote:
Originally Posted by spence
The data seems to indicate that when properly regulated this wasn't the case. In fact as I've noted, even in the run up to the crisis CRA regulated sub-prime loans weren't the problem.
The "slippery slope" argument is dubious as it ignores the regulatory side of the equation. Sub-prime isn't evil, but when firms like Countrywide run wild there's a problem. Mortgage backed securities aren't evil, but when they're sent into a derivative black hole there's a problem.
Interestingly enough, the most detailed study of this mess has just been completed.
http://www.nytimes.com/2011/01/26/bu...uiry.html?_r=1
While there's plenty of predictable blame to go around, here's on line that stuck out...
Should make for some interesting reading.
-spence |
Spence, that is a political document.
The sad thing is, regulators won't pay heed to that report. They can ignore it, because, it is a political document.
All the bad loans came from somewhere, and if you bothered to even see where a few of them came from and what kind of loans they were, regardless of subprime or prime credit, you'd have a clue.
But nobody bothers to do their own work anymore.