4 ms·
Part of the reason for the 2008 financial crash was loans made to people who would have traditionally been "redlined" (denied credit for legitimate reasons) aft
by mtgp1000 6y ago
Part of the reason for the 2008 financial crash was loans made to people who would have traditionally been "redlined" (denied credit for legitimate reasons) after a federal push for more inclusive loaning. IIRC this was a big chunk of overrated securities and at the very least contributed to instability by increasing the nationwide average probability of default.
- albntomat0 6y agoDo you have a source with additional information on this? Not doubting your information, just looking to learn more. Thanks!
- mtgp1000 6y agoI read a few paragraphs and this seems to be a good source for what I'm describing. As usual, the road to hell is paved with good intentions. https://fee.org/articles/how-the-federal-government-created-the-subprime-mortgage-crisis/ https://fee.org/articles/how-the-federal-government-created-...
- albntomat0 6y agoThanks! I'll take a look
- shakethemonkey 6y agoWhile this is not untrue on its face, the bulk of the blame should go to initiating banks, who became more willing to make untenable loans because they could package and securitize the loans and sell them off to investors, avoiding the consequences of their own actions.