An economist’s viewpoint

My wife sent me a link responding to some of my assertions in my last post. My wife is also an economist by the way.

Here it is:





      My response:

I read the article. Thanks. Maybe you can help me out here Reena. I don’t understand this from the article:

“Beyond that, the mere existence of “subprime” loans — i.e., mortgages given to less-creditworthy individuals at higher interest rates — isn’t the problem here. The problems have to do with what was done with the loans after they were packaged, sold and used to make leveraged plays.”

So people being unable to pay their mortgages “…isn’t the problem here.” Really? It surely has something to so with “the problem”. At the very least, it is the beginning of ‘the problem’. Weren’t the ‘meanie banks’ who packaged and sold these loans just trying to minimize their risk and avoid the fall out of these loans not being paid back? Does that make them ‘greedy’? I need help understanding this.

This article also somehow implies that Republicans are blaming minorities for this problem. That seems like a stretch.


2 Responses to “An economist’s viewpoint”

  1. Reena Says:

    I responded to the former post.


  2. diddly Says:

    I am going to put that Economists Viewpoint on my blogroll.


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