Recent Financial Crisis Rooted in Politics of Creditworthiness, New Study Contends
Thursday, June 2, 2011 - 11:00
in Mathematics & Economics
A common reading of the recent subprime mortgage crisis pins the blame on bankers and loan brokers who extended mortgages to those who could not afford them, thereby inflating a housing bubble that was destined to burst. While technically correct, that reading ignores the "politics of creditworthiness" that undergirded the rise of subprime mortgages, as explained in a new study.