It wasn’t exactly a failure of unregulated business, even if many of the lawsuits are going to push that theme (Carol D. Leonnig, “How HUD Mortgage Policy Fed The Crisis”, Washington Post, Jun. 10)(via Hans Bader).
It wasn’t exactly a failure of unregulated business, even if many of the lawsuits are going to push that theme (Carol D. Leonnig, “How HUD Mortgage Policy Fed The Crisis”, Washington Post, Jun. 10)(via Hans Bader).
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Folks, it’s yet another sued-if-you-do, sued-if-you-don’t moment in America. Don’t lend to minorities, and you’re racist. Lend to minorities and they default, and it’s big bad business. The blame never falls where it should.
When I was young, it was said that Redlining was not a valid assessment of risk. It was racism. Now we know that slander has consequences, with direct victims and indirect victims. There should be some accountability for the cheap racial activism that we have all suffered from over the years. Burning at a stake comes to my mind.
But the mess that we now have in the housing market resulted more from the bubble in housing prices. If a house increases in price by 30% in a couple of years, then actual defaults are not a problem. Sell the house and/or refinance. Unfortunately the free market being based on individual decisions can not protect itself from emerging instability. That is why regulation is needed. NOT to protect a consumer; he is protected by his ability to choose among brands; but to protect those who provide goods and services in a responsible manner.
The endless finger pointing is truly amazing… but that’s the american way, become a victim and then find someone to sue! Most of these folks should NOT have been in homes anyway… take a sample – exclude folks with true medical or health issues, for the balance look at the debt taken on AFTER the purchase of the house and you will see a telling tale.
My two favorite topics now that nobody seems to address in the media are the criminally usurious credit card interest rates, and the unfettered ability of local governments taxation of real property….