If it looks like a duck and sounds like a duck, I don't care what you call it, its a duck.
Barney and his cohorts are guilty as sin!.
“Subprime” lending was never the culprit until the government got into the game.
It appears there are a number of people who take an all or none position on the sub-prime question. But any amount of bad debt contributed by the sub-prime helped sink the ship. Therefore the question is: how bad would the crisis have been without the sub-prime debt which some people (Edward Pinto) say totals in the trillions? I’m not an expert, so I don’t have all the answers. But I find it difficult to believe that bad sub-prime loans which many banks were forced to agree to didn’t have a very big and bad part in the disaster.
I suspect a distinction without a difference. If you lend money to folks who, statistically, are unlikely to pay it back, you'll likely get stiffed. And... that caught Barney's attention!
Why?
they’re part of the same puzzle. the very nature of subprime lending was low to no down payment,regardless of credit history. its true that the upper tier of borrowers are now having the same problem but ask yourself this.
If one person buys a home that in any reasonable market is worth 100k but pays 200k,what does that do to valuations higher up? Subprime lending caused bottoms up inflation in the housing market.
At the end of the day,we know bwarney stood in the way. i wish i knew if the pubbies had the power to override him or is he simply attempting to blow smoke up the publics collective bottom,something i suspect he enjoys doing.
They are both intertwined, it is a distinction without much difference.
Those who got subprime deals were the ones that should never have gotten loans in the first place.
In the end, the banks were RISKING OUR SAVINGS WITH POOR INVESTMENTS!
I’ve recently seen some interesting data suggesting subprime lending isn’t the culprit - it was lending against insufficient equity or down payment. But I’ll still blame Bwarney.
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Right, which was still pushed front and center by dims trying to ‘spread’ the dream (wealth)...instead, we get the double nightmare, and the idiots in the press blame it all on Bush, like a bunch of ninnie school children...
I am not in the morgage business but it seems there is something to be said for that. If a person makes a big enough down payment there would seem to be no need for even a credit check but if there is littel or no down payment they are not actually risking anything.