re: #426 garhighway

Hers, of course. But the more interesting question is “Whose fault was it that the banks did untold thousands of such deals, all of which were built on the implicit or explicit assumption that real estate prices would rise forever?”

As a matter of politics or public policy, this isn’t about her little drama. It’s about how the banks damn near put us in a Depression, and as of this moment, nothing has changed to prevent them from doing it again.

We need one of two things: a regulatory scheme that keeps that from happening, or one that keeps the size of any given player small enough so that his failure due to such a misadventure is manageable.

Oh. I thought most of these deals were built on the explicit assumption that the borrower could afford the payment. How naive of me…