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Do you think that granting mortgages to NINJAs (no income, jobs or assets) had any affect on the sharp rise in housing costs leading up to the ‘08 bubble?
by armenarmen 6y ago
Do you think that granting mortgages to NINJAs (no income, jobs or assets) had any affect on the sharp rise in housing costs leading up to the ‘08 bubble?
- yardie 6y ago> Do you think that granting mortgages to NINJAs (no income, jobs or assets) had any affect on the sharp rise in housing costs leading up to the ‘08 bubble? While NINJAs certainly didn't help with the situation leading up to the GFC in 2008. Let's make one thing abundantly clear. Subprime mortgages did not cause the crash. They were just the tipping of a series of shitty monetary policies. The majority of mortgage defaults came from investors and the upper middle class [0][1]. People with really good jobs, lots of credit, and every resource to walk away from a sinking ship. The bubble was caused by lawyers, doctors, Wall Street, and people just like you or I. The ones who could talk their way into taking out $200k-1mm loans from a bank based on having good enough credit. [0] https://www.tuck.dartmouth.edu/news/articles/the-role-of-the-middle-class-in-the-mortgage-crisis https://www.tuck.dartmouth.edu/news/articles/the-role-of-the... [1] https://www.nytimes.com/2010/07/09/business/economy/09rich.html https://www.nytimes.com/2010/07/09/business/economy/09rich.h...