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That is simply wrong. The US housing bubble, while experiencing fraud at the margins, was neither a cause nor an effect of fraud. The bulk was really due to t
by JackFr 11y ago
That is simply wrong. The US housing bubble, while experiencing fraud at the margins, was neither a cause nor an effect of fraud. The bulk was really due to too much money chasing too few assets, and a bunch of foolish decisions made in good faith by both borrowers and lenders.
The idea that fraud lead a US housing bubble to cause a real estate bubble in the UK and Spain, and a banking crisis in Iceland and Ireland is just not correct.
- tim333 11y ago>foolish decisions made in good faith by .... lenders I'd dispute that. Often it was a smart and cynical decision by lenders to make bad loans, take the bonuses and commissions and leave the government and others to clean up the mess. If you were to pin the blame on one group I'd say it was mostly the governments fault for under regulating this stuff.