Bloomberg Under Fire for 2008 Comments Blaming Mortgage Crisis on End of Redlining

[jmg257]

11. Makes sense; politicians LOVED to say things like: 'the housing market is up!'

'More 1st time home buyers then ever!'


“And then Congress got involved — local elected officials, as well — and said, ‘Oh that’s not fair, these people should be able to get credit.’,” Bloomberg continued. “And once you started pushing in that direction, banks started making more and more loans where the credit of the person buying the house wasn’t as good as you would like.”

Watch The Big Short.

"The problem back then, amply illustrated in The Big Short by idiot estate agents and greedy bankers, was that the American banks were lending huge amounts of money to people who had little hope of repaying it if anything went wrong with the housing market. "

"The Miami stripper portrayed in The Big Short, who owned five houses and a condo, was perfectly plausible as a symbol of the madness of the time. They called such lending “subprime”, where even the jobless and the fraudulent could get a dream home.