Commentary: Crisis was result of false assumptions

11/14/2011 | (free registration)

Andrew Kahr, a principal in Credit Builders, argues that the global financial crisis was caused by false assumptions made in the markets rather than subprime lending. The crisis was about a variety of creative mortgages, some made to people with good credit scores. "What these mortgages had in common was the underwriting assumption that home prices would continue to rise -- so that increased payments would never have to be made," Kahr writes.

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