[clue-talk] The stimulus bill

[Angelo Bertolli]

On Fri, Feb 6, 2009 at 11:11 PM, Collins Richey <crichey at gmail.com> wrote:

> On Fri, Feb 6, 2009 at 7:23 PM, Angelo Bertolli
> <angelo.bertolli at gmail.com> wrote:
>
> > Subsidizing mortgages not withstanding, I think you'd at least agree that
> > the mortgage crisis we're in right now has way more to do with banks/loan
> > officers/whoever not doing their risk assessment "properly."  Unless you
> > mean that our attitudes about houses and the culture created by our laws
> > gave the banks the feeling that they could get away with it.
> >
>
> You missed Jed's point entirely. It's not a matter of the banks
> feeling that they could get away with it. They were actively
> encouraged (if not required) to ignore the ability to pay back loans
> by Freddie and Fannie and the Barney Frank types in Congress. The
> "proper" risk assessment was the desire to get a loan, not the ability
> to pay back the loan.
>


And they don't have to report it as a loss?  Or they were forced to give the
house away for free?  I don't think so.
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