The Erosion of Lending Standards
With house prices on the rise, lenders became less cautious in requiring down payments, leading to a decline in lending standards. The belief in a permanent increase in prices and the profitability of catering to consumer demand played a significant role in this erosion.In this clip
From this podcast
EconTalk
Richard Posner on the Financial Crisis
Related Questions
What caused the 2008 financial crisis as discussed in the episode Russ Roberts on the Crisis and the clip Uncovering the Mortgage Market?
What caused the 2008 financial crisis as discussed in the episode Russ Roberts on the Crisis and the clip Uncovering the Mortgage Market?
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