Irresponsible Banks? Hardly

Another gem from Obama’s “only government” speech:

Banks made loans without concern for whether borrowers could repay them…

Assuming he’s referring to mortgages, these banks were forced to lower their standards and offer “affordable” loans to borrowers that couldn’t repay them. And when those loans were taken off the bank’s hands by concerns backed by Freddie/Fannie, the moral hazard of the banks not being tied to the failure of said loans was created. This is another example of government avoiding the blame for the crisis it created.

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