Quote:
Originally Posted by fishpoopoo
absurdly low interest rates sparked mortgage originations and speculation in housing.
lots of crazy loans were made to people who weren't going to pay them back.
that's not market forces. that's manipulation.
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Certainly, but I was speaking more to US borrowing rates (like 1%) and big outside investors seeking better returns. It's not like people were looking for a way to package mortgage backed securities just so banks could issue more loans...there was a demand that drove the process from both sides.
-spence
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