Posted by Wayne Parham [ 70.234.131.1 ] on September 29, 2008 at 18:09:32:

In Reply to: Boy, you got that right! posted by The Irishman on September 28, 2008 at 21:58:24:

If I am to believe what I hear, the banks were encouraged to lower their lending standards in the 1990's. They were giving loans to bad risk borrowers under pressure of a liberal administration during this period. This carried forward for the years that followed, coerced by pressures from Democrats in Congress.

Now, maybe "what I hear" isn't accurate, but then again, it comes from interviews with Clinton and others. Maybe those were sound bites and there is a larger context, but it does stand to reason that a liberal agenda to promote spreading the wealth would do this. It doesn't stand to reason that a bank operating solely on free market principles would extend loans to dangerously high risk borrowers. Banks, as a general rule, are pretty conservative institutions with a fairly low tolerance for risk.

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