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Michael Roston

My favorite thing in the NYT story was the blithe quote from the Barclays banker that while option ARMs were once only for 'sophisticated' investors (i.e. rich people with growing incomes), they were extended to all kinds of wannabe homeowners. Some accident.


The 1982 Act that deregulated the SLs was called "An Act to revitalize the housing industry by strengthening the financial stability of home mortgage lending institutions and ensuring the availability of home mortgage loans,"

That worked really well for us.


"But there were no more accidents in the banking industry than there were accidents in New Orleans."

You can replace "banking industry" with almost any corporate or government policy disaster and it would still ring true. There are very few accidents, or unforeseen consequences, in Washington and corporate America. The policies and decisions that leave others to suffer are simply acceptable to those in power.

Laurie Essig

you're right- in the news analysis of the mortgage crisis, "sophisticated" ARM takers translates as "posh" and "living beyond their means" subprime mortgage holders translates as "the great unwashed."

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