Raghu writes: >> This may sound plausible and fit nicely with free-market ideas, but as >> I pointed out earlier, there is exactly zero evidence to back it up. I >> am afraid even the most elegant theory is useless if it doesn't agree >> with the facts. >> >> Countrywide was not run for the maximization of applause or anything >> else other then profits and thats just a fact.
We will have to agree to disagree. There was bipartisan political pressure to increase homeownership in various communities, which by definition required a relaxation of historical lending standards. I don't see how anybody could dispute that the increase in the default rate was tied to the relaxation of standards and no-money down mortgages. The dispute, I would submit, is whether the standards would have been relaxed in the absence of such political pressures. My bet is that the standards would not have been relaxed, you apparently disagree. David Shemano _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
