Minority mortgage meldown and diversity recession

People are starting to realize wonder where all the money was pissed away to.  The answer, of course, is that most of it was pissed away on affirmative action loans to members of protected minorities.  Whose fault is this?

Steve Sailer blames primarily Karl Rove and George Bush

There is much truth in this, but I would primarily blame Basel II.

Under Basel II, what matters to a financial institution is not whether its assets are safely invested, but whether they are officially declared to be safely invested.  The people in charge of deciding what is officially safe have no incentive to make their estimates accurate, but powerful incentives to make their estimates politically correct.

4 Responses to “Minority mortgage meldown and diversity recession”

  1. Gadfly says:

    Basel was not implemented until 2008. The loans that blew up were drawn up several years before that. How could Basel possibly be the cause?

  2. Riley says:

    Basel was not implemented until 2008. The loans that blew up were drawn up several years before that. How could Basel possibly be the cause?

    • jim says:

      Basel was implemented well before 2008. Basel II continued everything that had gone wrong and tried to keep it going, unsuccessfully attempting to postpone the crisis.

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