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Marcus Martin's avatar

Excellent article, and I of course agree with your analysis. Recent history offers two examples where uncritical lending to the worst borrowers led to devastating results for society (not just investors): 1. the subprime mortgage crisis - - really, stupid government affordable housing policies through Fannie/Freddie promoted by Wall Street; and 2. the stupid federal student load lending practices to student borrowers (and their parents) for unqualified borrowers to pursue worthless degrees that have led to $1.5 trillion in student loans, most of which are worthless. Are the universities that got this "free" money going to stand behind the product they sold to the unsuspecting students? Perhaps we should confiscate their endowments?

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Charlie Martin's avatar

Well, from my research, subprime personal loans don’t really have the ability to become a bubble that starts to shake the whole economy. It puts the companies that make them in a difficult situation, but not the whole economy. Don’t see your student loan argument either. Do you just use every opportunity that you can to attack government made student loans and higher education?

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Marcus Martin's avatar

Yes. Do have a problem with that?

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