Quote:
Originally Posted by whell
Lax regulation is being generous. Purposeful manipulation of the market would be more accurate. Then, here comes the arrogant know-nothing part: assuming that you can direct a mortgage industry to suspend logic when underwriting mortgages - potentially assuming that tax payers would foot the bill if something went wrong - while forgetting that real estate is an investment that can rise and fall just like any other investment.
...but their intentions were good, so we'll forgive them...
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While the brilliant idea of the securitization of mortgages certainly opened the door to expanded home ownership, it also opened the door to hucksterism and more elaborate forms of fraud/malfeasance. Yet another example of the unintended consequences of legislation outweighing the benefits methinks.
If banks simply had to hold their own mortgages, none of this would have occurred (but rates would inevitably been higher IMHO). When will we ever learn that there's no such thing as a free lunch? If something appears to be a win-win-win situation, there's gotta be an unidentified loser somewhere (and it happens to be the taxpayer in this instance).