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That banks extended bad loans under pressure from the government suggests they did so at a loss; otherwise, they would have done it anyway in search of profit.
by SantalBlush 4y ago
That banks extended bad loans under pressure from the government suggests they did so at a loss; otherwise, they would have done it anyway in search of profit. Moreover, Sowell makes bold claims and offers little evidence beyond references to redlining, while the evidence that banks were engaged in unethical and fraudulent practices are backed up by cold-hard data and an abundance of testimony from people within the industry. Sowell's essay is revisionism.
- deleted 4y ago[deleted]
- JackFr 4y agoYou understand the borrowers weren’t the victims of the fraud —- in fact they were engaged in it. The banks settled on charges of selling securities backed by loans that they had not sufficiently vetted, of which many turned out bad.
- vkou 4y agoThe banks issuing the loans weren't the victims of the fraud, either. They were making money hand over fist repackaging and reselling those shitty loans.