[lbo-talk] Dodd bill

Charles Brown charlesb at cncl.ci.detroit.mi.us
Wed Sep 24 07:42:48 PDT 2008


Doug wrote:


> So who gets support? People who are
> delinquent or in foreclosure? Why
> would anyone keep paying a mortgage
> then?

^^^^^ CB: True.

Also, why wouldn't "banks" ( in the generic sense) just keep taking wild risks in the future, if they know that the bigger the risk they take, the more likely that it turns into its opposite, a zero risk ? In fact, the banks are more likely to get paid (by the government) if the loans default. Oh, fear of moral hazard, where hath thou gone.

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