There is a popular (at least in certain circles and mindsets) that the CRA regulations led to the mortgage problems, rather than the creation of AAA rated "junk" mortgage bonds.
If you actually look at the CRA type loans the default rates are actually pretty in line with the historical normal default ranges - or at least were before the entire economy fell over.
I must read the Lewis book. I've read Liar's Poker which covers the creation of the mortgage bond market in the first place.
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Date: 2010-04-13 10:49 pm (UTC)If you actually look at the CRA type loans the default rates are actually pretty in line with the historical normal default ranges - or at least were before the entire economy fell over.
I must read the Lewis book. I've read Liar's Poker which covers the creation of the mortgage bond market in the first place.