In which an economist tries to blame borrowers, not lenders…

…Sita Slavov thinks we should fear the predatory borrowers, not the lenders.   Are there predatory borrowers?  Absolutely.  What I find ironic is these borrowers are mirroring the behavior of…lenders.  And they are to blame for this? 

I think not.  Banks are not victims in the ongoing housing crisis.  Neither are predatory borrowers.  The real victims are those who were talked into mortgages they could not explain nor afford.  The real victims are those who trusted the agents, appraisers and lenders to fulfill their fiduciary duties and are now tens or hundreds of thousands of dollars underwater, with no hope for a solid sale and are facing the loss of social mobility.

It continually boggles me we are years into this thing and the powers that be are doing everything in their power to not fix it.

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