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June 15, 2015

Subprime People and Intellectual Bubbles

Lenders were under government compulsion to reduce lending standards, safe in the knowledge that government-sponsored coyotes such as Fannie Mae would gobble up their subprime loans like a warren of rabbits.
And the GSEs didn't let on that by 2007 over half of all mortgages were subprime (or "non-traditional"), 76% of which on their books (meaning our books, i.e., taxpayers responsible for the left's follies). Thus, if we dig down to the bottom of it all, we find the government forcing lenders to issue subprime loans. But it isn't really the loan that's subprime, rather, the person receiving the loan. In other words, the real problem is subprime people who are more likely to default on their loans. As such, the so-called bubble was filled with subprime people. One Cʘsmos: Subprime People and Intellectual Bubbles

Posted by gerardvanderleun at June 15, 2015 9:38 PM. This is an entry on the sideblog of American Digest: Check it out.

Your Say

Building tent cities or filling the FEMA camps with the scofflaws and defaulters would help.
One of the rules could be: if you don't work you don't eat.
Back in the Thirties the Works Administration and CCC camps made a lot of bad people good. This is the kind of socialist programs we need.
Not gimme gimme all is free but work and eat, work harder and get more. Simple economic principles.

Posted by: chasmatic [TypeKey Profile Page] at June 15, 2015 10:28 PM

You make too much sense Chas. You're expecting the gov't to be common sensical and it ain't ever gonna happen. Instead, it will continue to try new ways to fleece the productive people - carve a big chunk for itself - then throw a few coins to the lazy
clingers. Let em rot on the vine.

Posted by: ghostsniper [TypeKey Profile Page] at June 16, 2015 4:35 AM

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