Adamsmith2 Wrote:
Jul 14, 2012 4:12 PM
Mish, it seems that in the years leading up to the housing crisis banks didn't even care about the credit-worthyness of their borrowers. I understand that this was partially forced upon them by foolish laws and backstopped by Fanny & Freddy etc. Yet lend to uncredit-worthy borrowers they did, and in enormous amounts. Your argument is absolutely rational but is still refuted by recent events.