Comments on: A Government-Made Recession http://blog.tenthamendmentcenter.com/2010/09/a-government-made-recession/ The Tenther Grapevine Wed, 22 May 2013 18:45:02 +0000 hourly 1 By: Philosopherking http://blog.tenthamendmentcenter.com/2010/09/a-government-made-recession/#comment-3292 Philosopherking Sat, 11 Sep 2010 20:21:11 +0000 http://blog.tenthamendmentcenter.com/?p=5272#comment-3292 I agree with this but in some situations banks were forced to make loans to people who didn't qualify but in most situations the banks had no risk so they made loans like mad since they didn't risk losing their own money. Wouldn't you do the same thing if you can profit with no possibility of loss.

]]> By: Jeff Matthews http://blog.tenthamendmentcenter.com/2010/09/a-government-made-recession/#comment-3291 Jeff Matthews Sat, 11 Sep 2010 02:57:21 +0000 http://blog.tenthamendmentcenter.com/?p=5272#comment-3291 I am in agreement about limiting the feds, wholeheartedly.

But this "forcing banks to make loans" thing has been grossly exaggerated. The real story behind the scene is that these mortgage originators were all too happy to lend to anyone and everyone. They had ready markets for their paper and made out like bandits off the origination fees and spreads. They had no incentive whatsoever to concern themselves with the creditworthiness of the borrowers any more than your stockbroker gives a flip about whether you will make money or lose money on your stock trading. They are just in it for the transaction and care nothing about how good it is.

Force had nothing to do with it. The number of so-called forced loans pales in comparison to the number which went into default. You can rest assured that this national foreclosure epidemic was not mostly caused because banks were required to loan money to Black people.

I wonder if anyone has any statistics on absolute foreclosure numbers broken down by race.

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