[cryptography] Digital cash in the news...

James A. Donald jamesd at echeque.com
Mon Jun 13 21:29:01 EDT 2011


On 2011-06-14 1:50 AM, Nathan Loofbourrow wrote:
> After a while you run out of big dumb mortgages, and we did. So the pressure
> was on to create more of them. Once everyone has a mortgage, or maybe two,
> you start lending to folks with a risk profile that wasn't so hot anymore.

This happened in commercial real estate, which also got bubbled, and 
also got falling credit standards - yet no crisis in commercial real 
estate.  Developers went bust, and financiers forclosed, sold the 
properties for markedly less than loan value.  And that was that.  No 
crisis, no drama, no bailouts.

The difference was that with mortgages to individuals, (usually black or 
no hablo English individuals) the bank issued liar loans, or like 
Beverly Hills bank, got rated "Substantially non compliant with the CRA"



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