First we had the '83 creation of CMOs, then the '99 relaxation of laws concerning mortgage eligibility.
Mortgage brokers began offering loans to people who might not be able to pay it back, but the brokers didn't care so long as they got paid their commissions. Banks began to finance houses that would end in foreclosure, but the banks didn't care so long as someone else bought the mortgage later.
I think this is a case where Hanlon's Razor doesn't apply: it wasn't stupidity, it was malice.
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Date: 2008-09-24 03:57 pm (UTC)First we had the '83 creation of CMOs, then the '99 relaxation of laws concerning mortgage eligibility.
Mortgage brokers began offering loans to people who might not be able to pay it back, but the brokers didn't care so long as they got paid their commissions. Banks began to finance houses that would end in foreclosure, but the banks didn't care so long as someone else bought the mortgage later.
I think this is a case where Hanlon's Razor doesn't apply: it wasn't stupidity, it was malice.