Michael S. Barr [1] in The New York Times, today:
WHILE the causes of the mortgage crisis are myriad, a central problem was that many borrowers took out loans that they did not understand and could not afford.
Yep. But what set up that situation?
Instead of blaming ‘sales tactics’ how about we blame the real problem?
Pressure on banks to establish lending to the ‘poor’, a practice which was established during the Clinton years… The government, in short WANTED those loans to happen, and pressured the banks into creating them. Of course, it’s not the government’s fault when these best laid plans cause the degree of collapse that’s occurred, right?
So much for ‘helping the poor’. Governmental pressure on banks got ’em the loans, but they were not able to handle them, because of a lack of education.
Government schools, again.
BBCT: Memeorandum