One of the most persistent narratives of the recent crisis portrays a nation of unsophisticated home buyers led astray by greedy bankers. Supposedly those bankers were willing to write risky loans because they intended to pass them on to some unwary investor. But this explanation falters in the face of a legion of failing commercial deals. Prospective landlords had all the expertise they should have needed to put a fair price on properties--and the majority of lenders who were originating loans for their own portfolios had ample incentive to perform careful due diligence.Agreed--twice.
(via Instapundit)
1 comment:
Don't worry, bobn has some reason why it's all Bush's fault, and we need more regulation...
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