[lbo-talk] Goolsbee: subprime was pretty groovy (in 2007)

Doug Henwood dhenwood at panix.com
Sun Nov 30 20:02:09 PST 2008


On Nov 30, 2008, at 10:02 PM, Max B. Sawicky wrote:


> And in general looser credit is better than tighter credit, within
> limits that
> were obviously breached, but looser is the more liberal impulse.

Well, no. Loose credit is often the cowardly solution to class conflict. Instead of taking money from the rich, they're encouraged to lend it to the poor. Instead of having a rational housing policy, which insulates shelter from the idiocies of speculative markets, we have subprime loans to people who shouldn't be borrowing gobs of money. This is one of the foundational defects of populism.

Doug



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