This whole mess isn’t racial. It’s just demographics at work. Banks will loan money to anyone with the right credit. All money is green after all. What banks won’t do is loan money to bad credit risks without someone forcing them to do so. After all, it’s not really the banks money anyway, it’s the depositor’s money.

The crying and screaming from the left about the big mean banks is just nonsense. Behind that bank are the many millions of customers who are the savers and users of those services. Someone defaulting at the loan is not getting back at “The Man”, they are simply ripping off their friends and neighbors who do business there. The end result are higher fees, less credit available to those who need it, higher interest rates and foreclosed homes which the bank doesn’t want to own anyway.

This whole bailout has me steamed. I’ve been living in a claustrophobic one bedroom apartment and saving my money for a hefty down payment. Now I’ll be helping to pay for the irresponsible acts of others. I’m thrilled beyond words.

Is there a link to the 1992 study? Did it really argue that “mortgage payment relative to income, credit history, savings history and income verification” are outdated? There has to be more to the story.

Michael S. Rozeff has written an article on the other ingredient of this mess, the Federal Reserve’s loose money policy . It can be found at http://www.lewrockwell.com/rozeff/rozeff203.html