2007-03-19 22:11:02.278515+00 by Dan Lyke 3 comments
Interesting essay and long set of comments on the situation in mortgage markets. One way or the other it looks like the real estate industry is going to get a bail-out and the people who behaved responsibly are going to end up screwed with the bill.
[ related topics: Economics Real Estate ]
comments in ascending chronological order (reverse):
#Comment Re: made: 2007-03-19 23:56:19.478177+00 by: DaveP
I especially like the way he blames capitalism. As if lenders are going to make bad loans without knowing that they're going to get bailed out instead of getting stuck with a bunch of houses they don't really want when the borrowers default.
#Comment Re: made: 2007-03-20 00:02:36.47694+00 by: Dan Lyke
Yeah. That's one of the reasons I like the comments on that entry as much as I like the original, because there's lots of theorizing to go around.
Although for the most part, as a fallback plan to a government bail-out I'm pretty sure the lenders are glad to suck down a large salary and leave the actual investors in the lurch when the lending companies go under.
#Comment Re: made: 2007-03-20 09:42:13.495983+00 by: DaveP
Well, yeah. They're not going to take responsibility for writing bad loans. Would be un-American.