You know, I'm getting weary of hearing that.
I knew that the housing bubble was gonna pop when I saw the houses on my block go from the low $200's to the high $400's between 2001 and 2005. (And I sold out at the peak, too).
None of the people in my town who refi'd their houses and pissed away all the proceeds were tomato pickers or welfare moms. They were without exception white, middle class, employed people who were greedy or stupid or both.
When the true history of the housing bubble is written, I believe we'll find that the fraction of bubbliciousness coming from the CRA and associated programs was perhaps one-fifth, perhaps much less.
I'm not worried about those people. You already convinced me that bank owners should have to eat those losses. Hey, wait a minute, they already did.
When the true history of the housing bubble is written, I believe we'll find that the fraction of bubbliciousness coming from the CRA and associated programs was perhaps one-fifth, perhaps much less.
Great. Who reimburses the banks for that one-fifth?