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For every unwise borrower there is an unwise lender. My sympathies are more with the borrower, since the lender, as the side that supposedly hired people with
by sethg 16y ago
For every unwise borrower there is an unwise lender. My sympathies are more with the borrower, since the lender, as the side that supposedly hired people with financial acumen, bears a majority of the responsibility for assessing risk.
- gsmaverick 16y agoIn this case the problem lies with the political pressure applied by both Bush and Clinton on Fannie Mae and Freddie Mac to continue giving out more mortgages.
- MichaelSalib 16y agoA bigger problem is the homeowners mortgage interest deduction. In terms of its stated policy rational, it is a complete joke, but modification let alone elimination remains political suicide.
- tptacek 16y agoThis simplification presumes that there are only two parties with stakes in a residential mortgage. That's not at all true. There are tens of millions of residential mortgages taken out in good faith and held in good standing, and they will absolutely pay in one way or another for the abuse of the system by either lenders or homeowners.