Chritopher, forgive me where I’m wrong (I’m only a Brit) but it was my understanding that the drive to dole out loans to the less economically viable in terms of home loans or mortgages was an event that had its origins and impetus in the years of the Carter mal-administration in ’77 to ’81. The banks, generally, connived and saw an opportunity to increase their asset base and revenue stream, and enthusiastically supported the policy. When the loans started to fail and the revenue stream from the payback instalments reduced through the ‘90s and 2000s the banks then mixed and matched and then sliced up the debt and sold it on to other dupes, who thought that here was an opportunity for them to get onto another gravy train. When the defaults started to rise that was what precipitated the 2008 meltdown.
Chritopher, forgive me where I’m wrong (I’m only a Brit) but it was my understanding that the drive to dole out loans to the less economically viable in terms of home loans or mortgages was an event that had its origins and impetus in the years of the Carter mal-administration in ’77 to ’81. The banks, generally, connived and saw an opportunity to increase their asset base and revenue stream, and enthusiastically supported the policy. When the loans started to fail and the revenue stream from the payback instalments reduced through the ‘90s and 2000s the banks then mixed and matched and then sliced up the debt and sold it on to other dupes, who thought that here was an opportunity for them to get onto another gravy train. When the defaults started to rise that was what precipitated the 2008 meltdown.
Can you elucidate on this view?